A Polisher Costs $10,000 and Will Cost $20,000 a Year

question 107

Multiple Choice

A polisher costs $10,000 and will cost $20,000 a year to operate and maintain.If the discount rate is 10 percent and the polisher will last for 5 years, what is the equivalent annual cost of the tool?

• A)$22,638
• B)$85,815
• C)$12,638
• D)$32,638

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Definitions:

Disputed Defect

A flaw or fault in a product or system that is contested or disagreed upon by parties involved.

Negligent Upkeep

Failure to properly maintain or care for property or equipment, which can lead to damage or injury.

Common Areas

Spaces within a building or development that are available for use by all occupants or members, such as lobbies, hallways, and recreational facilities.

Breaching The Lease Agreement

Violation of the terms of a lease agreement, which may result in legal consequences for the violator.