Problem:
Automated manufactures uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs 1480000 to purchase plus an additional 49000 a year to operate. The machines have a 6 year life after which they are worthless.
Required:
Question: What is the equivalent annual cost of one of these machines if the required return is 16 percent?
Note: Provide support for your rationale.