Question: You are operating an old machine that is expected to produce a cash inflow of $ 5 , 1 0 0 in each of the

You are operating an old machine that is expected to produce a cash inflow of $5,100 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,100 but is much more efficient and will provide a cash flow of $10,150 a year 4 years.
Calculate the equivalent annual cost of the new machine if the discount rate is 14%.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Equivalent ann
the purchase price
Should you replace your equipment now?
Yes
No
You are operating an old machine that is expected to produce

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