Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one packing machine if the required rate of return is 12%? (Round your answer to whole dollars.)

A) $54,224,08

B) $38,556.67

C) $81,006.15

D) $65,378.93

E) $79,004.12