What is equivalent annual cost for best choice for firm

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Reference no: EM131050393

Projects with different lives: Your firm is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $40,000 and should last four years. The lesser quality printer costs $30,000 and should last three years. If the cost of capital for the firm is 13 percent, then what is the equivalent annual cost for the best choice for the firm? Round to the nearest dollar.

$12,706, lesser quality printer

$10,000, either printer

$10,000, lesser quality printer

$13,448, high-quality printer

Reference no: EM131050393

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