Alum inc uses high-tech equipment to produce specialized


ALUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,520,000 to purchase plus an additional $48,000 a year to operate. The machines have a five-year life after which they are worthless. What is the equivalent annual cost (used to evaluate investments of unequal lives) of one these machines if the required return is 15.5 percent?

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Financial Management: Alum inc uses high-tech equipment to produce specialized
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