Question: Ajax Corporation is considering purchasing a machine with a useful life of 5 years and costs $55,000. The machine has annual maintenance costs of $1,000.

Ajax Corporation is considering purchasing a machine with a useful life of 5 years and costs $55,000. The machine has annual maintenance costs of $1,000. Given a rate of 10%, calculate the machines EAC. Ignore PVCCATS.

a.11739.18

b.11758.16

c.15881.37

d.15508.86

e.12000.00

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