Assume a machine costs $505,000 and lasts six years before it is replaced. The operating cost is $63,500 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 11 percent? (Hint: the EAC should account for both initial investment and annual operating costs)

		$128,095.78
		$142,170.50
		$177,011.22
		$160,724.56
		$182,870.16