Explore BrainMass

Explore BrainMass

    Equivalent Annual Costs and Discount Rates

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A polisher costs $10,000 and will cost $20,000 a year to operate and maintain. If the discount rate is 10 percent and the polisher will last for 5 years, what is the equivalent annual cost of the tool?
    A) 33.33%
    B) 40.00%
    C) 66.67%
    D) 80.00%

    © BrainMass Inc. brainmass.com June 3, 2020, 10:47 pm ad1c9bdddf

    Solution Preview

    Polisher cost $10,000
    Annual maintenance and operating cost ...

    Solution Summary

    The equivalent annual cost of a polisher is determined.