At i = 15% per year, a machine has a first cost of $15,000 and estimated operating costs and year-end salvage values as shown. The annual equivalent cost if you operate the machine for 5 years is closest to which value? Operating Cost, $/year Salvage Value, $ Year 1 -1,000 10,000 9,000 8,000 2 -1,200 3 -1,500 4 -2,000 3,000 -5,000 1,000

At i = 15% per year, a machine has a first cost of $15,000 and estimated operating costs and year-end salvage values as shown. The annual equivalent cost if you operate the machine for 5 years is closest to which value? Operating Cost, $/year Salvage Value, $ Year 1 -1,000 10,000 9,000 8,000 2 -1,200 3 -1,500 4 -2,000 3,000 -5,000 1,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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