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Alumak, Incorporated, uses high-tech equipment to produce specialized products. Each one of its machines costs $55,000 to purchase plus an additional $6,000 per year to
Alumak, Incorporated, uses high-tech equipment to produce specialized products. Each one of its machines costs $55,000 to purchase plus an additional $6,000 per year to operate. The machines have a four-year life after which they are worthless. What is the equivalent annual cost of one of these machines if the required return is 15 percent?
$25,265
$18,032
$37,870
$19,750
$19,265
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