Equivalent annual cost of one packing machine

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Reference no: EM131586829

Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $136,000 and lasts about 4 years before it needs replaced. The operating cost per machine is $6,000 a year. What is the equivalent annual cost of one packing machine if the required rate of return is 12%? (Round your answer to whole dollars.)

A. $38,556

B. $50,776

C. $79,012

D. $101,006

E. $154,224

Reference no: EM131586829

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