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you are operating an old machine that is expected to produce a cash inflow of $5100 in each of the next 3 years before it
you are operating an old machine that is expected to produce a cash inflow of $5100 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $21,100 but is more efficient and will provide a cash flow of $10,150 a year for 4 years.
Calculate the equivilant annual cost of the new machine if the discount rate is 14%.
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