WSU Inc. has various options for replacing a piece of manufacturing equipment. The present value of costs for option Ell is $84,000. Option Ell has a useful life of 5 years; annual operating costs were discounted at 9%. What is the equivalent annual cost?

A) $16,800
B) $21,595.77
C) $14,035.77
D) $18,312


Answer: B

Business

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