A new D8 will cost you $600,000. You estimate maintenance to be $14,000 at the end of each year (including year of sale), but major repairs at the end of year 4 will cost an additional $15,000. The machine will be sold for an estimated $300,000 at the end of year 5. Calculate the annual cost of this investment at a 10% compound interest rate. Your solution must be accompanied by a sketch of the cash flow diagram.?

Answer rating: 100% (QA)

To calculate the annual cost of this investment at a 10 compound interest rate we can create a cash ... View the full answer