Lane Company uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $15,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? When solving problem please show all the work so I can gain understanding there are some steps that you need to follow that will assist me:
Step 1: provide the formula(s) if any
Step 2 show all the calculations to arrive at the final answer
Step 3 Please do not use excell