Champion Bakers Uses Specialized Ovens to Bake Its Bread

Multiple Choice

Champion Bakers uses specialized ovens to bake its bread.One oven costs $689,000 and lasts about 4 years before it needs to be replaced.The annual operating cost per oven is $41,000.What is the equivalent annual cost of an oven if the required rate of return is 13 percent?

A) -$272,638
B) -$248,313
C) -$232,407
D) -$200,561
E) $196,210