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SGS Golf Academy is evaluating different golf practice equipment. The Dimple-Max equipment costs $146,000, has a 4-year life, and costs $9,800 per year to operate.

SGS Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $146,000, has a 4-year life, and costs $9,800 per year to operate. The relevant discount rate is 10 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $24,000 at the end of the projects life. The relevant tax rate is 22 percent. All cash flows occur at the end of the year. What is the EAC of this equipment?

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