Problemautomated manufactures uses high-tech equipment to, Ask an Expert

Finance

Problem:

Automated manufactures uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs 1480000 to purchase plus an additional 49000 a year to operate. The machines have a 6 year life after which they are worthless.

Required:

Question: What is the equivalent annual cost of one of these machines if the required return is 16 percent?

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162381

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