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Assume a machine costs $584,000 and lasts six years before it is replaced. The operating cost is $36,000 a year. Ignore taxes. What is the
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Assume a machine costs $584,000 and lasts six years before it is replaced. The operating cost is $36,000 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)
$178,043.82
$183,827.54
$189,411.36
$195,738.15
$202,144.51
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