Assume a machine costs $186,000 and lasts four years before it is replaced. The operating cost is $12,000 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 10 percent? (Hint: the EAC should account for both initial investment and annual operating costs)

A. $70,677.57

B. $67,218.50

C. $62,113.94

D. $58,004.73

E. $54,669.77