Average annual cost of ownership during the five year period

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Reference no: EM132036585

A new machine will cost $21,000 and will have a resale value of $12,000 after five years. Special tooling will cost $6,000 and will have a resale value of $1,500 after five years. Maintenance will be $2,000 per year. If the effective annual interest rate is 6%, then what is the average annual cost of ownership during the five year period?

Reference no: EM132036585

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