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Your company is in the business of customizing machines for use by other firms. The initial cost of one customized machine is $850,000 with annual

Your company is in the business of customizing machines for use by other firms. The initial cost of one customized machine is $850,000 with annual operating savings of $10,000 and a life of three years. The machine will be replaced at the end of its life. What is the equivalent annual cost of this machine if the required rate of return is 15% and we ignore taxes?

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