Equivalent cost of one packing machine


Problem:

Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $ 136,000 and lasts aobut 4 years before it nees to be replaced. The operating cost per machine is $6,000 per year.

Required:

Question: What is the equivalent cost of one packing machine if the required rate of return is 12%?

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Accounting Basics: Equivalent cost of one packing machine
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