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You are operating an old machine that is expected to produce a cash inflow of $5,800 in each of the next 3 years before it

You are operating an old machine that is expected to produce a cash inflow of $5,800 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,800 but is much more efficient and will provide a cash flow of $11,200 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 16%

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