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Bridgton Golf Academy is evaluating new golf practice equipment.The "Dimple-Max" equipment costs $104,000, has a 5-year life, andcosts $8,900 per year to operate. The relevant discount rate is 10percent. Assume that the straight-line depreciation method is usedand that the equipment is fully depreciated to zero. Furthermore,assume the equipment has a salvage value of $7,900 at the end ofthe project’s life. The relevant tax rate is 22 percent. All cashflows occur at the end of the year.What is the equivalent annual cost (EAC) of this equipment? (Anegative amount should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
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