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Alum Inc. uses high-tech equipment to produce specialized products. Each of its machines costs $1,243,000 to purchase plus an additional $78,000 a year to operate.
Alum Inc. uses high-tech equipment to produce specialized products. Each of its machines costs $1,243,000 to purchase plus an additional $78,000 a year to operate. The machine have a 5-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 16.5%?
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