Question: Banchee Corporation is considering purchasing a machine with a useful life of 10 years and costs $185,000. The machine has annual maintenance costs of $2,000.

Banchee Corporation is considering purchasing a machine with a useful life of 10 years and costs $185,000. The machine has annual maintenance costs of $2,000. Given a rate of 8%, calculate the machines EAC.

Multiple Choice

  • $27,570

  • $28,570

  • $25,570

  • $29,570

  • $26,570

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