Reference no: EM13807946
Automated Manufacturers uses high-tech equipment to produce specialized aluminium products for its customers. Each one of these machines costs $1,480,000 to purchase plus an additional $52,000 a year to operate. The machines have a 6-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16 percent?
A. -$453,657 B. -$427,109 C. -$301,586 D. -$295,667 E. -$256,947
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