Office Furniture Makers, Inc. uses machines to produce high quality office chairs for other firms. The initial cost of one customized machine is $770,000. This machine costs $16,000 a year to operate. Each machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this machine if the required return is 10%? (Enter answer with a positive sign, and to two decimal places)

Answer rating: 100% (QA)

Solution The equivalent annual cost of the machine can be calculated using the formula for the annua... View the full answer