WSU Inc. has several options for replacing a piece of manufacturing equipment. The present value of the Ell option costs is $84,000. The Ell option has a useful life of 5 years; Annual operating costs were discounted at 9%. What is the equivalent annual cost?

Answer rating: 100% (QA)

To calculate the equivalent annual cost EAC of the Ell option we need to consider th... View the full answer