A precision lathe costs $18,000 and will cost $28,000 a year to operate and maintain. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer as a positive value. Equivalent annual cost

A precision lathe costs $18,000 and will cost $28,000 a year to operate and maintain. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer as a positive value. Equivalent annual cost

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section10.A: Mutually Exclusive Investments Having Unequal Lives

Problem 2P

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