Question: Does someone know how to do this problem? Will rate a thumb up for good response thanks so much! 8. In response to a regulatory
Does someone know how to do this problem?
Will rate a thumb up for good response thanks so much!

8. In response to a regulatory requirement designed to protect the cuckoo population in the area of your plant, the state is requiring that you install a device that will prevent the birds from flying into the wind turbines that you installed last year in compliance with "green energy" regulation. There are two technologies you can use. One is from Gretaweint Technologie AB in Sweden, and the other is from Gorebekloppt GmbH in Germany. The relevant points of comparison are as follows: Gretaweint Gorebekloppt Equipment cost Life in years Tax depreciation (straight line) Residual vaue Annual operating expense $100,000.00 5 $20,000.00 zero $10,000.00 $150,000.00 10 $15,000.00 zero $5,000.00 Your firm's tax rate is 20%, and its cost of funds is 14%. a. What is the equivalent annual cost of the Gretaweint equipment? b. What is the equivalent annual cost of the Gorebekloppt equipment c. Which of the two technologies is the more cost effective
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