Multiple Choice
A currently used machine costs $10,000 annually to run.What is the maximum that should be paid to replace the machine with one that will last three years and cost only $4,000 annually to run? The opportunity cost of capital is 12 percent.
A) $2,000
B) $9,607
C) $14,411
D) $24,018 NPV = 6,000
Correct Answer:
Verified
Correct Answer:
Verified
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