6.A machine costing $150,000 has a useful life of eight years, after which time its estimated...

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6.A machine costing $150,000 has a useful life of eight years, after which time its estimated resale value will be $30,000. Annual running costs will be $6,000 for the first three years of use and $8,000 for each of the next five years. All running costs are payable on the last days of the year to which they relate Using a discount rate of 20% per annum, what is the equivalent annual cost( to the nearest $100) of using the machine if it were bought and replaced every eight years in perpetuity? 6.A machine costing $150,000 has a useful life of eight years, after which time its estimated resale value will be $30,000. Annual running costs will be $6,000 for the first three years of use and $8,000 for each of the next five years. All running costs are payable on the last days of the year to which they relate Using a discount rate of 20% per annum, what is the equivalent annual cost( to the nearest $100) of using the machine if it were bought and replaced every eight years in perpetuity?

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Ans To determine the equivalent annual cost of using the machine you can calculate the present value ... View the full answer