A new machine with a $10-$year life has an initial cost of $$35,000$ and annual maintenance costs of $$1,500.$ The equivalent annual cost of this machine is best described as the

Multiple Choice

$10-$year annuity payment that has the same net present value as the project's costs, given a stated discount rate.

$10-$year total of all costs divided by $10.$

annual sales needed to offset the additional costs.

lump sum payment at Time $0$ that is equal to the additional costs at a given discount rate.

$10-$year average aftertax cash flow resulting from the annual costs.