Hybrid Golf Corp is considering a new milling machine for the production of their new Golf Club Line. The upfront cost is $120,000 and lasts about 7 years before it needs to be replaced. The annual operating cost is expected to be $75,000. What is the equivalent annual cost of an oven if the required rate of return is 10 percent? (assume no depreciation and assume all costs are after-tax).

Multiple Choice

• $76,432.0

• $165,993.0

• $82,800.2

• $99,648.70

• 87,912.90