A precision lathe costs $18,000 and the annual cost of operation and maintenance is $28,000. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Do not round up intermediate calculations. Round your answer to 2 decimal places. Enter your answer as a positive value.)

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Solution We need to find equivalent annual cost EAC A ... View the full answer