Question: A) $-2500 B) $-5000 C) $-9500 D) $-12000 A machine has a first cost of $10,000 and estimated operating costs and year-end salvage values as
A machine has a first cost of $10,000 and estimated operating costs and year-end salvage values as shown. The annual equivalent cost if you operate the machine for 4 years is closest to which value? Year Salvage Value,$ 7,000 5,000 4,200 3,000 2,000 2 3 4 The annual worth of the operating costs are determined below. Annual Worth of Operating Costs, s/year -1,000 Period 1 year 2 years 3 years 4 years 5 years At i = 10% per year, the annual equivalent cost if you operate the machine for 4 years is closest to which 1,500 -2,000 -2,500 -3,000 value
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