If Yörsan Dairy Product's machine operating cost is $45,341 per year for years 1 through 3 and then it increases by 4 % per year through year 15, which one of the following is closest to the year-zero present worth of the machine operating cost at an interest rate of 12% per year? Select one: а. 356,038 b. 351,548 с. 375,935 d. 409,082 е. 316,206

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...
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If Yörsan Dairy Product's machine operating cost is $45,341 per year for years 1 through 3 and then it increases by 4
% per year through year 15, which one of the following is closest to the year-zero present worth of the machine
operating cost at an interest rate of 12% per year?
Select one:
a. 356,038
b. 351,548
c. 375,935
d. 409,082
e. 316,206
Transcribed Image Text:If Yörsan Dairy Product's machine operating cost is $45,341 per year for years 1 through 3 and then it increases by 4 % per year through year 15, which one of the following is closest to the year-zero present worth of the machine operating cost at an interest rate of 12% per year? Select one: a. 356,038 b. 351,548 c. 375,935 d. 409,082 e. 316,206
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