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    The equivalent uniform annual cost per machine

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    Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. Their operating cost per machine is $22,000 for year 1 and it increases by $1000 per year through year 5. The equivalent uniform annual cost per machine (years 1-5) at an interest rate of 8% per year is?

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    Solution Preview

    See the attached excel file.

    Year Cost Discounting Factor at 8% Discounted ...

    Solution Summary

    The equivalent uniform annual cost per machine is assessed.

    $2.49

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