What is the equivalent annual cost of a piece of equipment that requires an initial investment of

Question:

What is the equivalent annual cost of a piece of equipment that requires an initial investment of $50,000, is expected to last seven years, and requires annual maintenance costs of $4,000 if the appropriate discount rate is 9 percent?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...