Jackson & Sons Uses Packing Machines to Prepare Its Products

Multiple Choice

Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $136,000 and lasts about 4 years before it needs replaced. The operating cost per machine is $6,000 a year. What is the equivalent annual cost of one packing machine if the required rate of return is 12%? (Round your answer to whole dollars.)

A) $38,556
B) $50,776
C) $79,012
D) $101,006
E) $154,224