Problem:
Champion Bakers uses specialized ovens to bake its bread. One oven costs $689,000 and lasts about 4 years before it needs to be replaced. The annual after tax operating cost per over is $41,000.
Required:
Question: What is the equivalent annual cost of an oven if the required rate of return is 13 percent?
- $272,638
- $248,313
- $232,407
- $200,561
- $196,210
Note: Please provide full description.