Question: Aragon Tools, Inc. needs to replace a machine. The initial cost of the new machine is $850,000. This machine costs $10,000 a year to operate.

Aragon Tools, Inc. needs to replace a machine. The initial cost of the new machine is $850,000. This machine costs $10,000 a year to operate. Each machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this machine if the required return is 9%? (Round your answer to whole dollars.)

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