The below tables shows Dynamic Mattress's year-end 2016 and 2018 balance sheets, and its income statement for 2017. Assets Current Assets: Cash Marketable securities Accounts receivable Inventory Total current assets Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Liabilities and Shareholders' Equity Current Liabilities: $ 60 Bank loans 30 Accounts payable 130 250 Total current liabilities $ 60 175 $ 235 Fixed assets: Gross investment Less depreciation Net fixed assets Total assets $ 270 90 $180 $ 650 Long-term debt Net worth (equity and retained earnings) 45 370 Total liabilities and net worth 3650 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Liabilities and Shareholders' Equity Current Liabilities: $ 260.0 Debt due within a year (bank loans) 0.0 Accounts payable 164.0 303.0 $ 727.0 Total current liabilities $ Assets Current Assets: Cash Marketable securities Accounts receivable Inventory Total current assets Fixed assets: Gross investment Less depreciation Net fixed assets Total assets 85.0 230.0 $ 315.0 $385.0 96.5 3 288.5 $1,015.5 Long-term debt Net worth (equity and retained earnings 100.0 600.5 Total liabilities and omers' equity $1,015. Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $1,500.0 Operating costs 1, 408.5 $ 91.5 Depreciation 6. 3 EBIT $ 85.0 Interest 5.0 Pretax income 80.0 Tax at 50% 40.0 Net income $ 40.0 Check my work A precision lathe costs $20,000 and will cost $30,000 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 5 years, what is the equivalent annual cost of the tool? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer as a positive value.) Equivalent annual cost es