Question

Can you answer: The first cost of a certain piece of equipment is $60,000. It will...

Can you answer:

The first cost of a certain piece of equipment is $60,000. It will have an annual operating cost of $30,000 and $6,000 salvage value after its 5-year life. At an interest rate of 10% per year, the capitalized cost of the equipment is closest to:

   A.  
-$323,710   

   B.  
-$32,371

   C.  
-$ 448452

   D.  
-$522,710

Business   Economics   
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Answer #1

The answer is (C.) -$448452

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