Assume a machine costs $390,000 and lasts five years before it is replaced. The operating cost is $32,500,000 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)

		$147,306.20
		$140,689.80
		$154,226.40
		$133,685.20
		$160,990.40