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ABC Company uses high-tech equipment to produce specialized products. Each one of its machines costs $1,050,000 to purchase plus an additional $55,000 year to operate.

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ABC Company uses high-tech equipment to produce specialized products. Each one of its machines costs $1,050,000 to purchase plus an additional $55,000 year to operate. The machines have a five-year life after which they are worthless. What is the equivalent annual cost of these machines if the required return is 7 percent

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