Yell Group plc, the global advertising company, is evaluating the viability of a new machine to print telephone directories in emerging markets. The baseline machine costs £65,000, has a 3-year life, and costs £12,000 per year to operate. The relevant discount rate is 10 per cent. Assume that the reducing balance (20 per cent) depreciation method is used. Furthermore, assume the equipment has a salvage value of £20,000 at the end of the project’s life. The relevant tax rate is 24 per cent. All cash flows occur at the end of the year. What is the equivalent annual cost (EAC) of this equipment?