High-tech equipment to produce specialized aluminum products

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Reference no: EM131049102

ALUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs \$1,520,000 to purchase plus an additional \$48,000 a year to operate. The machines have a five-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 15.5 percent?

it has to be one of the answer listed below

-\$506,819.32

-\$427,109.10

-\$335,803.37

-\$295,666.67

-\$556,947.08

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