An equipment has a purchase price (P) of $100,000 with a salvage value (S) of $20,000 and useful life (n) of 4 years. If an annual interest rate (i) is 4.5%, what is the ownership costs of the equipment using the time-value-of money equation? a. $22,199 b. $23,199 c. $24,199 d. $25,199

An equipment has a purchase price (P) of $100,000 with a salvage value (S) of $20,000 and useful life (n) of 4 years. If an annual interest rate (i) is 4.5%, what is the ownership costs of the equipment using the time-value-of money equation? a. $22,199 b. $23,199 c. $24,199 d. $25,199

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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31. An equipment has a purchase price (P) of $100,000 with a salvage value (S) of $20,000 and a
useful life (n) of 4 years. If an annual interest rate (i) is 4.5%, what is the ownership costs of
the equipment using the time-value-of money equation?
a. $22,199
b. $23,199
c. $24,199
d. $25,199

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