The annual rental rate for a machine is
A)the yearly depreciation and maintenance costs for the machine.
B)the yearly interest costs associated with owning the machine.
C)the initial purchase price of the machine divided by the number of years the machine is expected to last.
D)the sum of the yearly depreciation,maintenance,and interest costs associated with owning the machine.

Question

Quizplus · Accepted Answer

The annual rental rate for a machine typically includes all costs associated with owning the machine, such as depreciation (the decrease in value over time), maintenance (costs for upkeep), and interest (if the machine was purchased with a loan). This makes option D the correct answer, as it encompasses all these aspects.

The Annual Rental Rate for a Machine Is