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A company is considering buying a new machine for its main factory. The new machine initial cost ( investment ) is 1 0 7 4

A company is considering buying a new machine for its main factory. The new machine initial cost (investment) is 10741 and it can work 4 years before being scrapped. You can assume that a new one would then be bought, and that the company can renew this forever. Suppose that using the machine costs 1133 per year (after tax). What is the equivalent annual cost of this investment if the RRR is 12,69% per year?

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