A machine lasts 3 years and has a purchase price of $100. It costs $40 per year to operate and can be sold as junk for $15 at the end of its life. What is the EAC of the costs of operating a series of such machines into perpetuity if the discount rate is 15%?
A._15,3 -15/(1.15)³ = $181.47
The machine's equivalent annual cost is: $181.47/2.283 = $79.48

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The Answer of A machine lasts 3 years and has a purchase price of $100. It costs $40 per year to operate and can be sold as junk for $15 at the end of its life. What is the EAC of the costs of operating a series of such machines into perpetuity if the discount rate is 15%? A._15,3 -15/(1.15)³ = $181.47 The machine's equivalent annual cost is: $181.47/2.283 = $79.48

A Machine Lasts 3 Years and Has a Purchase Price