What is the annual cost of the cheapest machine

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Reference no: EM131774838

Question: You can choose between Machine A or B. Your interest rate is 6%. You need a Machine for an infinite time.

a. Machine A costs exist22, 000 and lasts for 3 years. It has no salvage value, and costs an additional exist15, 000 each year to operate.

b. Machine B costs exist40, 500 and lasts for 4 years. It has a salvage value of exist20, 000 and costs exist2, 000/year to operate.

Can you use the AEW method? ___

What is the Annual cost of the cheapest machine? ___

Reference no: EM131774838

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