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TMI is considering purchasing an equipment for its production. The initial cost of the machine Is $885,686. The equipment costs $10,840 a year to operate.
TMI is considering purchasing an equipment for its production. The initial cost of the machine Is $885,686. The equipment costs $10,840 a year to operate. The equipment has a life of 5 years before it is replaced. What is the equivalent annual cost of this equipment if the required return is 7.14%.
Round your answer to whole dollars.
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