Assume a machine costs $780,000 and lasts five years before it is replaced. The operating cost is $86,200 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)

		$318,875.58
		$252,400.62
		$280,830.66
		$279,310.27
		$302,579.59