Fred's Widget Company has purchased $500,000 in equipment,which can be sold for a salvage value of $300,000 at any time.The best interest rate on alternative investments is 5%.What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?

Question

Quizplus · Accepted Answer

The Answer of Fred's Widget Company has purchased $500,000 in equipment,which can be sold for a salvage value of $300,000 at any time.The best interest rate on alternative investments is 5%.What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?

Fred's Widget Company Has Purchased $500,000 in Equipment,which Can Be