Titanic Tools Uses Tool and Die Machines to Produce Machinery

question 69

Multiple Choice

Titanic Tools uses tool and die machines to produce machinery for other firms. The initial cost of one customized tool and die machine is $1.8 million. This machine costs $16,000 a year to operate.
Each machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this
Machine if the required return is 14%? Ignore taxes.

• A) $680,416.08
• B) $692,113.27
• C) $703,897.29
• D) $762,408.16
• E) $791,316.67

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Definitions:

Type Employee

Refers to a data type, typically a struct or class, representing an employee, including attributes such as name, ID, and position.

Pointer To Structure

A variable that stores the memory address of a structure, allowing for indirect access and manipulation of the structure's fields.

Equivalent

A term used to describe entities that have the same value or function in a given context.

Pointer->Member

Syntax used in C/C++ to access a member of a structure or a class through a pointer to that structure or class.