You Can Continue to Use Your Less Efficient Machine at a Cost

question 35

Multiple Choice

You can continue to use your less efficient machine at a cost of $8,000 annually for the next five years.Alternatively, you can purchase a more efficient machine for $12,000 plus $5,000 annual maintenance.At a cost of capital of 15 percent, you should:

• A)buy the new machine and save $600 in equivalent annual costs
• B)buy the new machine and save $388 in equivalent annual costs
• C)keep the old machine and save $388 in equivalent annual costs
• D)keep the old machine and save $580 in equivalent annual costs

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Definitions:

Live Preview

A feature that allows users to see a preview of changes, such as formatting, before applying them.

Multiple Apps

The capability or instance of using or running more than one application simultaneously on a device.

Windows 10

An operating system developed by Microsoft, providing a platform for personal computer applications and services.

Customized

Modified or tailored to meet specific requirements or preferences of a user or customer.