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The initial cost of a machine is $ 5 5 , 0 0 0 with annual operating costs of $ 3 , 0 0 0

The initial cost of a machine is $55,000 with annual operating costs of $3,000. Each machine has a life of three years before it is replaced. Ignore taxes. What is the equivalent annual cost (EAC) of this machine if the required return is 18 percent?
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