Question: Assume a machine costs $ 1 2 9 , 0 0 0 and lasts three years before it is replaced. The operating cost is $

Assume a machine costs $129,000 and lasts three years before it is replaced. The operating cost is $7,200 a year. Ignore taxes. What is the equivalent annual cost (EAC) if the required rate of return is 14 percent?

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