What the present value of the machine costs is

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Problem 1: A machine costs $20,000 today, and has annual operating costs of $4,000 in each of the next four years. The cost of capital is 10%. The present value of the machine's costs is _____ and its equivalent annual cost is _____.

Multiple choice question.

Option 1: $25,192.61; $7,023.53
Option 2: $32,679.46; $10,309.42
Option 3: $33,102.61; $11,947.52
Option 4: $23,102.61; $8,083.53

Reference no: EM132740261

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