The University has just invested $9,443 in a new desktop publishing system. From past experience, annual cash returns are estimated as

A(t) = $8000 - $4000(1+0.15)^t-1

S(t) = $6000(1 - 0.5)^t

where A(t) stands for the net cash flow in period t and S(t) stands for the salvage value at the end of year t, and t 1

If the MARR is 12%,compute the annual equivalent cost in year 2.