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Assume a machine costs $174,000 and lasts six years before it is replaced. The operating cost is $23,800 a year. Ignore taxes. What is the
Assume a machine costs $174,000 and lasts six years before it is replaced. The operating cost is $23,800 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 12 percent? (Hint: the EAC should account for both investment and annual operating costs)
$59,586.40
$68,470.32
$63,887.54
$61,913.72
$66,121.28
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