Hayden Inc. has a number of copiers that were bought four years ago for $22,000. Currently maintenance costs $2,200 a year, but the maintenance agreement expires at the end of two years and thereafter the annual maintenance charge will rise to $8,200. The machines have a current resale value of $8,200, but at the end of year 2 their value will have fallen to $3,700. By the end of year 6 the machines will be valueless and would be scrapped.

Hayden is considering replacing the copiers with new machines that would do essentially the same job. These machines cost $27,000, and the company can take out an eight-year maintenance contract for $1,400 a year. The machines will have no value by the end of the eight years and will be scrapped.

Both machines are depreciated by using seven-year MACRS, and the tax rate is 40%. Assume for simplicity that the inflation rate is zero. The real cost of capital is 9%. (Use PV table.)

a.	Calculate the equivalent annual cost, if the copiers are "a" replaced now, "b" replaced 2 years later, "c" replaced 6 years later. (Round "PV Factor" to 3 decimal places and final answers to the nearest dollar amount. Input all amounts as positive values.)

	Equivalent Annual Cost
"a" replaced now	$
"b" replaced 2 years later	$
"c" replaced 6 years later	$