What is the equivalent annual cost of an oven

Reference no: EM13280993

Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about 3 years before it needs to be replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 10 percent? (Round your answer to whole dollars)

Reference no: EM13280993

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