University of Sussex Business School plans to offer free coffee to all students. Therefore, it has purchased a coffee machine, costing 5000, which will cost 10000 per year to operate and maintain. If the discount rate is 12% and the coffee machine will last 5 years, what is the equivalent annual cost of the coffee machine? Show your workings.

 

 

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To calculate the equivalent annual cost of the coffee machine we need to consider the initial cost o... View the full answer