Assume a machine costs $234,000 and lasts four years before it is replaced. The operating cost is $18,500 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 initial investment and annual operating costs) $107,951.15 $103,445.88 $99,201.17 $95,540.86 $91,418.63