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A machine costs $60,000 and requires $5,000 maintenance for each year of its five-year life. The maintenance costs are p
Posted: Mon Jan 17, 2022 8:08 am
by answerhappygod
- A Machine Costs 60 000 And Requires 5 000 Maintenance For Each Year Of Its Five Year Life The Maintenance Costs Are P 1 (26.15 KiB) Viewed 52 times
A machine costs $60,000 and requires $5,000 maintenance for each year of its five-year life. The maintenance costs are paid at the end of each year. After five years, the machine will be replaced. Assume a tax rate of 40 percent and a discount rate of 20 percent. If the machine is depreciated over five years using the Modified Accelerated Cost Recovery System (MACRS), with $5,000 salvage value, what is the equivalent annual cost (EAC)? 3 52 6 Five years MACRS- 0.22 0.32- 0.1924 0.1159 0.115 0.058 22