Item Freezer Freezer B A Freezer ($25,000 ($30,000) Cost Annual (3,600) (4,000) Electric 5,000 Salvage 6,000 Value Life in 11 Years Cost of 6.00% Capital 11 B) $47,539.67 C) $50,232.02 D) $58,913.56 6.00% A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 9-2, what is the total cost for Freezer A? A) $28,600.00

Item Freezer Freezer B A Freezer ($25,000 ($30,000) Cost Annual (3,600) (4,000) Electric 5,000 Salvage 6,000 Value Life in 11 Years Cost of 6.00% Capital 11 B) $47,539.67 C) $50,232.02 D) $58,913.56 6.00% A restaurant is trying to determine the lowest total cost for purchasing a replacement freezer. The cost of capital is 6 percent and the freezer should last for 11 years. Using Table 9-2, what is the total cost for Freezer A? A) $28,600.00

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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