What is the equivalent annual cost of a machine


Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $49,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent? Use depreciation using straight line to zero. Assume tax rate of 40%

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the equivalent annual cost of a machine
Reference No:- TGS0730969

Expected delivery within 24 Hours