What will be the average annual cost of ownership

Reference no: EM132013856

Question: A new machine will cost $17,000 and will have an estimated salvage value of $14,000 in five years. Special tools for the new machine will cost $5000 and will have a resale value of $2500 at the end of five years. Maintenance costs are estimated at $200 per year. What will be the average annual cost of ownership during the next five years if interest is 6%?

Reference no: EM132013856

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