Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500 and lasts 5 years before it needs replaced. The machine will be worthless after the 5 years. The annual aftertax operating cost per machine is $38,400. What is the equivalent annual cost of one machine if the required rate of return is 16 percent?

A) $148,556.67
B) $159,800.23
C) $156,004.12
D) $143,006.15
E) $154,224.08


B) $159,800.23

Business

You might also like to view...

Coding consists of screening questionnaires to identify illegible, incomplete, inconsistent, or ambiguous responses

Indicate whether the statement is true or false

Business

Relevant costs in a sell or process-further decision include

a. costs of additional processing. b. both additional revenues and additional costs. c. revenues after additional processing. d. joint product costs.

Business

A job

a. encompasses a family of jobs. b. is your life's work. c. involves performing a designated set of responsibilities and duties for a specific employer. d. none of these choices.

Business

______ activities by a work group involve production, efficiency, and convergent thinking.

A. Exploration B. Divergent C. Convergent D. Exploitation

Business