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A machine costing $360,000 has a useful life of eight years, after which time its estimated present value of resale will be $13,800. The present
A machine costing $360,000 has a useful life of eight years, after which time its estimated present value of resale will be $13,800. The present value of the total running costs over the next eight years is $58,536 The company's cost of capital is 20%. What is the equivalent annual cost of using the machine if it were bought and replaced every eight years in perpetuity (to the nearest dollar)
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