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ABC company has decided to purchase a new printing machine. This Machine has a 9-yer life...

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Finance

ABC company has decided to purchase a new printing machine. ThisMachine has a 9-yer life and will cost 750,000 to install the newmachine. Total operation costs of the machine per year is 10,000.Calculate the EAC, if the discount rate is 11.25%.

Answer & Explanation Solved by verified expert
3.6 Ratings (551 Votes)
Step 1 is to find the PV of the annual operations costWe are given the following    See Answer
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Transcribed Image Text

ABC company has decided to purchase a new printing machine. ThisMachine has a 9-yer life and will cost 750,000 to install the newmachine. Total operation costs of the machine per year is 10,000.Calculate the EAC, if the discount rate is 11.25%.

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