Question: What is the equivalent annual cost (EAC) for a machine that costs $50,000 and requires payment of $6,000 per year for maintenance and operation expense,

  1. What is the equivalent annual cost (EAC) for a machine that costs $50,000 and requires payment of $6,000 per year for maintenance and operation expense, and lasts for 6 years with a 9% discount rate and no salvage value for the machine?

    A.

    $17,145.87
    B.

    $21,145.87
    C.

    $32,145.87
    D.

    $45,145.87
    E.

    $66,145.87

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