Corporate Finance Assignment/ Professional Essay Writers
What is the equivalent annual cost (EAC) of a machine that has an expected economic life of three years, if the cost of the machine is $25 million and it provides cash inflows of $6 million for each of the next 3 years? The discount rate is 10 percent.
a. $18.55 million.
b. $19.78 million.
c. $17.18 million.
d. $16.05 million.
e. $14.60 million. Get Finance Help Today