ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $2,345,000 to purchase plus an additional $125,000 a year to operate. The machines have a four-year (4) life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 9.5 percent? Multiple Choice -$2,457.902.50 -$756,947.08 -$891,203.44 -$856,788.04
ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $2,345,000 to purchase plus an additional $125,000 a year to operate. The machines have a four-year (4) life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 9.5 percent? Multiple Choice -$2,457.902.50 -$756,947.08 -$891,203.44 -$856,788.04
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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![-$427,109.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca98eb7b-d7d8-4502-ba28-0e81a7776a7b%2F65e8c9e0-43af-461f-9fdc-371652764aa6%2Foh72ee2_processed.png&w=3840&q=75)
Transcribed Image Text:-$427,109.10
![ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $2,345,000 to purchase plus an additional $125,000 a year
to operate. The machines have a four-year (4) life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is
9.5 percent?
Multiple Choice
-$2,457.902.50
-$756,947.08
-$891,203.44
-$856,788.04](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca98eb7b-d7d8-4502-ba28-0e81a7776a7b%2F65e8c9e0-43af-461f-9fdc-371652764aa6%2Fbkhyg5_processed.png&w=3840&q=75)
Transcribed Image Text:ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $2,345,000 to purchase plus an additional $125,000 a year
to operate. The machines have a four-year (4) life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is
9.5 percent?
Multiple Choice
-$2,457.902.50
-$756,947.08
-$891,203.44
-$856,788.04
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