lectur22-page2

lectur22-page2 - 2 = (60,000 + 20,000) X .08 = $3,200.00 /...

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1. ANNUAL OWNERSHIP COSTS: a. Depreciation = (cost - salvage value) = ($60,000 - $20,000) useful life 12 years = $3,333.33 /year b. Interest = (Cost + salvage value) X interest rate
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Unformatted text preview: 2 = (60,000 + 20,000) X .08 = $3,200.00 / year 2 c. Insurance = (Cost + salvage value) X insurance rate 2 = (60,000 + 20,000) X .008 = $320.00 / year 2...
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