What is the quivalent annual cost of the battery

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Reference no: EM13848432

University of Texas is considering purchasing a battery. The battery costs $36, has a useful life of 3 years, and will cost $100 per year to keep changed. The battery uses straight line depreciation and the salvage value is zero at the end of year 3. The tax rate is 30% and cost of capital is 12%. What is the (after taxes) equivalent annual cost of the battery?

Reference no: EM13848432

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