A factory is considering purchasing a lathe machine for the production. Each machine will cost $80,000 and have an operating and maintenance cost that of $20,000 each year. Assume the salvage value is $20,000 at the end of 6 years and the interest rate is 9%. What is the annual equivalent cost of owning and operating each machine?

Select one:

a. 35175

b. 25000

c. 44644

d. 55000

e. 40979

f. 31370