Question: An elevator system in an office building can either be refurbished or replaced.Replacing the elevator system will cost $140,000, with an expected life of 50

An elevator system in an office building can either be refurbished or replaced.Replacing the elevator system will cost $140,000, with an expected life of 50 years.Maintenance costs will be $400 per year. Salvage value at the end of 50 years will be $28,000.If interest is 4%, the annual equivalent cost for replacing the elevators is:

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