Question: Assume a machine costs $132,000 and lasts six years before it is replaced. The operating cost is $19,400 a year. Ignore taxes. What is the

Assume a machine costs $132,000 and lasts six years before it is replaced. The operating cost is $19,400 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 12 percent? (Hint: the EAC should account for both initial investment and annual operating costs)

		$51,505.79
		$49,218.56
		$47,521.73
		$45,864.28
		$43,803.72

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