A machine cost Rs. 20000 and its useful life is 8 years. Money is borrowed on an interest of 8% per annum. The Capital Recovery Factor on 8% interest per year for 8 years is 0.174. Machine will have annual equipment cost
A. Rs. 1740
B. Rs.480
C. Rs. 5220
D. Rs.660
Answer:B
A machine cost Rs. 20000 and its useful life is 8 years. Money is borrowed on an interest of 8% per annum. The Capital Recovery Factor on 8% interest per year for 8 years is 0.174. Machine will have annual equipment cost
A. Rs. 1740 B. Rs.480 C. Rs. 5220 D. Rs.660