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The Initial Cost of a Machine Is $727,000 with Annual

Question 2

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The initial cost of a machine is $727,000 with annual operating costs of $39,600.Each machine has a life of 5 years before it is replaced.Ignore taxes.What is the equivalent annual cost of this machine if the required return is 16 percent?


A) $237,750.85
B) $268,411.15
C) $261,632.62
D) $240,600.00
E) $289,038.11

Correct Answer:

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