A furniture manufacturer is planning on buying a new industrial sander costing $118,000 and belonging in a 30% CCA class.
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A furniture manufacturer is planning on buying a new industrial sander costing $118,000 and belonging in a 30% CCA

class. The sander has projected maintenance costs of $16,000 annually over the three-year life of the sander. At the end of the three years, the sander will be worthless and will be scrapped. The company has a 34% tax rate, a 16% discount rate. What is the equivalent annual cost?

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