What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $65,000, anannual operating cost of $13,500, and an estimatedsalvage value of $23,000 after six years of use at anannual interest rate of 6%?

What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $65,000, anannual operating cost of $13,500, and an estimatedsalvage value of $23,000 after six years of use at anannual interest rate of 6%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $65,000, an
annual operating cost of $13,500, and an estimated
salvage value of $23,000 after six years of use at an
annual interest rate of 6%?

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