Problem $6$

A machine costs $$60,000$ and requires $$5,000$ maintenance for each year of its three$-$year

life. After three years, this machine will be replaced. Assume a tax rate of $34$ percent and a

discount rate of $14$ percent. If the machine is depreciated with a three$-$year straight$-$line

without a salvage value, what is the equivalent annual cost $($EAC$)?$