A Firm Decides to Purchase a 3D Printer at a Cost

Multiple Choice

A firm decides to purchase a 3D printer at a cost of $25,000,with an estimated useful life of 10 years.The printer will require servicing at a cost of $1,500 per year.What is the equivalent annual annuity of this deal,given a cost of capital of 8%?

A) $5,226
B) $4,000
C) $3,704
D) $1,500
E) $35,065