Question: Use formulas to complete the problem and show the used formulas; thank you. PV should = -38207.33 and EAC should = 5617.21. fx A B

Use formulas to complete the problem and show the used formulas;

Use formulas to complete the problem and show the used formulas; thank you. PV should = -38207.33 and EAC should = 5617.21.

fx A B D E F G . 1 J K 1 Understanding equivalent annual cost 2 3 4 A machine costs $ 11,000.00 to purchase and will cost $ 4,000.00 per year to operate and maintain. If the appropriate discount rate is 7.7% and the machine will last 10 years, what is the equivalent annual cost for this machine? 5 6 7 8 9 Initial cost= $ 11,000.00 Annual cash flows= $ (4,000.00) Discount rate= 7.7% Investment horizon= PV of the cash flows= 10 10 11 12 13 Equivalent annual cost= 14

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