A new machine, with a $7-$year life, has an initial cost of $$6,400$ and annual costs of $$750.$ The equivalent annual cost of this machine is best described as the

Multiple Choice

$7-$year total of all costs divided by $7.$

$7-$year annuity payment that has the same net present value as the project's costs, given a stated discount rate.

annual sales needed to offset these additional costs.

$7-$year average aftertax cash flow resulting from the annual costs.

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