A company is considering buying a new piece of machinery. the initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. annual operating cost is 18,000. what is the equivalent uniform annual cost of the machine based on 10% interest rate?
A company is considering buying a new piece of machinery. the initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. annual operating cost is 18,000. what is the equivalent uniform annual cost of the machine based on 10% interest rate?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company is considering buying a new piece of machinery. the initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. annual operating cost is 18,000. what is the equivalent uniform annual cost of the machine based on 10% interest rate?
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