A company is considering buying a new piece of machinery. the initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. annual operating cost is 18,000. what is the equivalent uniform annual cost of the machine based on 10% interest rate?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3EA: If a copy center is considering the purchase of a new copy machine with an initial investment cost...
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A company is considering buying a new piece of machinery. the initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. annual operating cost is 18,000. what is the equivalent uniform annual cost of the machine based on 10% interest rate? 

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