-$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 yearto 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 is9.5 percent?Multiple Choice-$2,457.902.50-$756,947.08-$891,203.44-$856,788.04

Cost of Machine = $2345000Required rate of return = 9.5%Life of the machine = 4 years

Answered: ALUM Inc. uses high-tech equipment to…

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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