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Assume a machine costs $ 2 5 0 , 0 0 0 and lasts five years before it is replaced. The operating cost is $

Assume a machine costs $250,000 and lasts five years before it is replaced. The operating cost is $37,200 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 16 percent? ( Hint: EAC should account for both investment and annual operating costs)

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