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A machine with a 6 - year life costs $ 1 0 , 0 0 0 today, and will have annual after - tax operating

A machine with a 6-year life costs $10,000 today, and will have annual after-tax operating expenses of $2,500 at years t =1, t =2, t =3, t =4, t =5, and t =6(each year the expense is $2,500). There are no other cash flows associated with this machine. The firm's cost of capital is 10% per year. What is the EAC (equivalent annual cost) for this machine?

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