Question: Please follow all instructions and answer correctly. You are operating an old machine that is expected to produce a cash inflow of $6,100 in each

Please follow all instructions and answer correctly.

You are operating an old machine that is expected to produce a cash inflow of $6,100 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $21,100 but is much more efficient and will provide a cash flow of $11,650 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 14%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost of the purchase price Should you replace your equipment now? O Yes O NO

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