What is the equivalent annual annuity of this deal

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Reference no: EM13911226

An company buys a color printer that will cost $18,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%?

1) -$3983

2) -$4002

3) -$4957

4) -$5493

Reference no: EM13911226

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