Amazon is considering using high capacity drones that would make its product

deliveries more efficient. For this project, $$119,000$ would need to be spent right away to

buy the required fleet of drones. The drones will be losing their economic value in equal

amount each year, fully over their $4-$year economic lives. Once the drones' economic life

is over, they would all be sold for $$8,900$ selling price to a new owner, and Amazon

would then immediately purchase the same but brand$-$new drones for the same price as

what it paid for the initial fleet of drones. When those drones' life is over, they would

again be sold and, again, brand$-$new ones would be purchased $-$ all for the same prices

as for the initial drones, and so on$,$ over and over.

Additional information:

Amazon expects $$9,400$ in annual operating costs.

All future cash flows are year$-$end cash flows.

Amazon pays $22$ percent tax rate on all taxable income.

Amazon requires an annual discount rate of $11$ percent, and the rate is not

expected to change in the future.

The equivalent annual cost $($EAC$)$ of the drones equals

$($Since cost is a cash

outflow, a negative dollar amount should be indicated by a minus sign. Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

EAC