Problem
Consider a machine purchased one year ago for $12,000. The machine is being depreciated $4,000 per year over a three-year period. Its current market value is $5,000, and the expected market value of the machine one year from now is $3,000. If the interest rate is 10 percent, what is the expected cost of holding the machine during the next year?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.