Hudsons Bay corporation is considering purchasing one of two photocopiers. the first photocopier will have an initial cost of $110,000 and will have operating costs of $21,000 per year during its 7 year life. The second photocopier will cost $135,500 and will have operating costs of $22,000 per year during its 10 year life. If the company's required rate of return is 7%, determine the equivalent annual cost of each machine.

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