What would be the equivalent not savings per machine hour

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Reference no: EM131605960

You have purchased a machine costing $32,000. The machine will be use for two years, and at the end of this time, its salvage value is expected to be $17,000. The machine will be used 8,000 hours during the first year and 9,000 hours during the second year. The expected annual net savings will be $41,000 during the first year and $45,000 during the second year. If your interest rate is 13%, what would be the equivalent not savings per machine hour?

The equivalent net savings are $ 4.06 per machine hour. (Round to the nearest cent.)

Reference no: EM131605960

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