The Initial Cost of One Customized Machine Is $675,000 with an Annual

question 98

Multiple Choice

The initial cost of one customized machine is $675,000 with an annual operating cost of $14,800,and a life of 4 years.The machine will be worthless and replaced at the end of its life.What is the equivalent annual cost of this machine if the required rate of return is 14.5 percent and we ignore taxes?

• A)$249,797.41
• B)$240,008.02
• C)$248,841.99
• D)$247,647.78
• E)$251,610.29

---

Definitions:

Heritability

The proportion of observed variation in a particular trait, within a population, that can be attributed to inherited genetic factors.

Monozygotic Twins

Identical twins that develop from a single fertilized egg and share 100% of their genetic material, leading to nearly identical physical traits and often similar behavior.

Dizygotic Twins

Twins that are formed from two different eggs fertilized by two different sperm, making them genetically similar to siblings born at different times.

IQ

Intelligence Quotient, a numerical measure of a person's relative intelligence determined through various standardized tests.