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Q) A company has bought a machine for $10000 and sold it at time 3 for $2000. The running costs are time 1- $4000, time 2- $5000 and time 3- $7000. If cost of capital is 10% and the company intends to replace the machine infinite number of times, what is the equivalent annual cost?
a) 22114
b) 8892
c) 246
d) 7371Sir for this I am getting $9055 and this isnt any of the options? Am I wrong?
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