Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Bridgton Golf Academy is evaluating different golf practice equipment The Dimple-Max” equi...

Bridgton Golf Academy is evaluating different golf practice equipment The Dimple-Max” equipment costs $63000 has a three-year life and costs $7500 per year to operate The relevant discount rate

Bridgton Golf Academy is evaluating different golf practice equipment. The “Dimple-Max” equipment costs $63,000, has a three-year life, and costs $7,500 per year to operate. The relevant discount rate is 12 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $15,000 at the end of the project's life. The relevant tax rate is 34 percent. All cash flows occur at the end of the year. What is the equivalent annual cost (EAC) of this equipment?

Jun 23 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions