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Precision Tool requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. A

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Precision Tool requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. A Machine it is using has an initial cost of $892,000, annual operating cash flow (OCF) of - $26,300, and a 4-year life. The machine will be replaced at the end of its useful life. What is the EAC of the machine. -$338,737 -$355,702 -$376,907 -$436,864

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