The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life (years) -70,000 -12,000 8000 1,000,000 $850,996 $920,000 $900,550 -$950,696 O o o O

The alternatives shown on the basis of their capitalized costs using an interest rate of 10% per year. What is the capitalize cost for machine A. Machine A Machine B First cost, SR -100,00 -800,000 Annual Operation Cost, SR/ year Salvage value, SR Life (years) -70,000 -12,000 8000 1,000,000 $850,996 $920,000 $900,550 -$950,696 O o o O

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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