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Crater Lake Diagnostics Inc

Question 65

Multiple Choice

Crater Lake Diagnostics Inc.is considering the purchase of a new piece of equipment that has an initial investment of $75,000,has annual expenses associated with its operation of $10,000 per year and has a six year life.What is the equivalent annual cost of this investment if the firms considers the appropriate discount rate to be 11%?


A) $17,728
B) $19,551
C) $22,500
D) $27,728

Correct Answer:

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