Country breads uses specialized ovens to bake its bread. one oven costs $249,000 and lasts about 15 years before it needs to be replaced. the annual operating cost per oven is $34,300. what is the equivalent annual cost of an oven if the required rate of return is 14 percent?

(a) -$74.839.43
(b) -$48,349.72
(c) -$82,800.19
(d) $50,560.08
(e) -$28,729.77

The equivalent annual cost of an oven is

Explanation:

Hi

Known Data

Operating cost=, and

Computing total cost per year

We are going to use the formula below with the known data.

. Then this is the fixed amortization cost per year.

Finally, we sum the fixed amortization cost per year and the operating cost:

Total cost per year=, therefore the answer is  

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"