Solved

Assume the Initial Cost of One Customized Tool and Die

Question 80

Multiple Choice

Assume the initial cost of one customized tool and die machine is $684,000 and costs $12,600 a year to operate.Each machine has a life of three years before it is replaced.Ignore taxes.What is the equivalent annual cost of this machine if the required return is 14 percent?


A) $237,750.85
B) $268,411.15
C) $307,220.33
D) $240,600.00
E) $289,038.11

Correct Answer:

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