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What is the equivalent annuity

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FFF is planning on buying a new industrial sander costing $90,000. The saner has projected maintenance costs of $20,000 annually over the three-year life of the sander. At the end of three years, the sander will be worthless and will be scrapped. The company has a 30% tax rate, a 15% discount rate, and uses straight-line depreciation over the life of a project. What is the equivalent annuity (cost)?

a) $-11,416
b) $-44,418
c) $-50,000
d) $-101,416
e) none of the above

Reference no: EM131472947

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