Problem 8-32 Equivalent Annual Cost (LO4) A precision lathe costs $10,300 and will cost $21,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 6 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Problem 8-32 Equivalent Annual Cost (LO4)
A precision lathe costs $10,300 and will cost $21,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last
for 6 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest
cent.)
The equivalent annual cost $
Transcribed Image Text:Problem 8-32 Equivalent Annual Cost (LO4) A precision lathe costs $10,300 and will cost $21,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 6 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $
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