A furniture manufacturer is planning on buying a new industrial sander costing $118,000. The sander has projected maintenance costs of $16,000 annually over the three-year life of the sander. At the end of the three years, the sander will be worthless and will be scrapped. The company has a 34% tax rate, a 16% discount rate, and uses straight-line depreciation over the life of a project. What is the equivalent annual cost? a. $36,520 b. $47,892 $51,311 $68,540