Photo Co. needs to purchase a photocopying machine. It wants to calculate the EAC of the following machine. The machine has an initial cost of $18,000 and useful life of three years. Its maintenance cost is $2,000 a year. The expected salvage value is $600. Straight line depreciation method including salvage value for depreciation calculation will be employed. The photocopying machine will be replaced indefinitely and it requires no additional working capital. The appropriate discount rate is 12% and tax rate is 15%.

Answer rating: 100% (QA)

Solutlon The EAC of the photocopylng machine Is 817314 Please find the attach... View the full answer