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

question 79

Multiple Choice

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

• A) $17,163.04
• B) $22,187.84
• C) $22,637.98
• D) $19,411.15

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often requiring elimination during the consolidation process.

NCI

NCI, or Non-controlling Interest, represents the portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Subsidiary Profits

Earnings generated by a subsidiary that contribute to the income and financial standing of its parent company.