Question: You are considering two alternative machines, Machine A and Machine B , for a manufacturing process. One of the machines, Machine A , costs $

You are considering two alternative machines, Machine A and Machine B, for a manufacturing process. One of the machines, Machine A, costs $41,000 to set up and $6,000 per year to operate, but It must be completely replaced every 4 years, and it has no salvage value. Assuming the cost of capital is 11.2%, what is the equivalent annual cost of the machine?
Question 21 options:
$19,272
$20,872
$22,422
$23,972
$25,372
$26,922

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