Question: 29. Before the restaurant chain purchases the above machine, another sales rep approaches them with a less expensive machine called the Burner. Although cheaper, the

 29. Before the restaurant chain purchases the above machine, another sales

29. Before the restaurant chain purchases the above machine, another sales rep approaches them with a less expensive machine called the "Burner." Although cheaper, the Burner has a shorter warranty. The Burner oven costs $23,000, fully installed. Again, the chain doesn't believe the ovens will have any impact on sales. This Burner will lower overall use and maintenance costs by $3,000 annually. The ovens will be sold for approximately $2,500 each when they go out of warranty in 6 years, but will be depreciated to $0 book value over 6 years via straight-line method. The chains marginal tax rate is 28% and the firm requires a return of 10% on all capital investments. What is the equivalent annual cost (EAC) of one Burner oven? Enter answer in dollars, rounded to the nearest dollar. Enter

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