You are evaluating a new machine that has a four-year life and costs $100,000. The pretax operating costs of operating the machine are $22147 per year. Use straight-line depreciation to zero over the project's life and assume a before-tax market salvage value of $20,000 at the end of four years. If your tax rate is 34 percent and your discount rate is 7 percent. What is the Equivalent Annual Cost (EAC)?

Select one:

a. $28338

b. $32667

c. $28211

d. $30118

e. $25580