A machine which has a 18 year life will cost $16,000 now with annual operating costs of $1000 the first year and increasing $60 per year each of the next 17 years. The salvage value is estimated to be $4,000 at the end of the 18h year.

A. Timeline (4 pts)

B. What is the equivalent annual cost of operating this machine for the next 18 years if other opportunities exist to have the investment dollars invested where they would earn 9% annual rate of return. (15 pts)