A machine costs Rs. 20000 and its useful life is 8 years. The money is borrowed

Question

A machine costs Rs. 20000 and its useful life is 8 years. The money is borrowed at 8% interest per annum. The capital recovery factor at 8% interest per annum for 8 years is 0.174. The annual equipment cost of the machine will be

Options:

A . Rs. 1740

B . Rs. 3480

C . Rs. 5220

D . Rs. 6960

Answer: Option B

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