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A company uses packing machines to prepare its products for shipping. One machine costs $30,000 and lasts five years before it is replaced. The operating

A company uses packing machines to prepare its products for shipping. One machine costs $30,000 and lasts five years before it is replaced. The operating cost is $1,000 per year. (NOTE: This is the operating cash flow. You are not required to calculate the OCF for this problem.) What is the equivalent annual cost of a packing machine if the required rate of return is 12%?

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