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    Equivalent Annual Costs and Discount Rates

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    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%

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    https://brainmass.com/business/equivalent-annual-annuity/finance-249662

    Solution Preview

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

    Solution Summary

    The equivalent annual cost of a polisher is determined.

    $2.19

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