Question: A company is evaluating a machine. The machine costs $230,000, has a three-year life, and has pretax operating costs of $67,000 per year. The cost
A company is evaluating a machine. The machine costs $230,000, has a three-year life, and has pretax operating costs of $67,000 per year. The cost of the machine will be depreciated to zero over the project's life. The machine will be sold for $60,000 at the end of the project's life. If the tax rate is 23 percent and the discount rate is 9 percent, what is the equivalent annual cost for this machine? Enter the equivalent annual cost as a positive number and enter your answer as dollars with 2 digits to the right of the decimal point in the box shown below
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