Question: Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be

Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $7,500 a year. lgnoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%?

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