A Currently Used Machine Costs $10,000 Annually to Run

question 71

Multiple Choice

A currently used machine costs $10,000 annually to run.What is the maximum that should be paid to replace the machine with one that will last 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%.

• A) $15,209.84
• B) $9,607.33
• C) $14,410.99
• D) $10,338.56

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