7.26 Aviara Golf Academy is evaluating different golf practice equipment. The “easy as pie”

equipment costs $45,000, has a three-year life, and costs $5,000 per year to operate. The relevant discount rate is 12 percent. Assume that the straight-line depreciation down to zero is used. Furthermore, it has a salvage value of $10,000. The relevant tax rate is 34 percent. What is the EAC of this equipment?