You are operating an old machine that is expected to produce a cash inflow of $7,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $22,000 but is much more efficient and will provide a cash flow of $13,000 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 16%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

You are operating an old machine that is expected to produce a cash inflow of $7,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $22,000 but is much more efficient and will provide a cash flow of $13,000 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 16%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost of the purchase price Should you replace your equipment now? O Yes