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What is the equivalent annual cost of the machine

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Reference no: EM132483973

Point 1: The initial cost of one customized machine is $675000 with an annual operation cost of $14800, and a life of 4 years. The machine will be worthless and replaced at the end of its life.

Question 1: What is the equivalent annual cost of this machine if the required rate of return is 14.55 and we ignore taxes?

Reference no: EM132483973

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