What is the maximum annual equivalent amount for the device

Reference no: EM13326381

An electronic device is available that will reduce year'slabor cost by $10,000. the equipment is expected to last for eightyears. If labor is cost increase at an average rate of 7% per year and the interest rate is 12% per year

a. what is the maximum annual equivalent amount that we could justify spending for the device?

b. what is the uniform annual equivalent value (A) of labor cost the eight year period.

Reference no: EM13326381

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