Machine Technotronic

costs $2,000,000, has a four-year life with expected salvage value in four years of $716,800, and has pre-tax operating costs of $370,000 per year. Machine

is in Class 8 (CCA rate of 20 percent per year, Accelerated Investment Incentive

in the first year is applied). If your tax rate is 35 percent and your discount

rate is 19 percent, compute the EAC (equivalent annual cost) for Machine Technotronic.

Give the answer in

thousands of dollars without decimal places, rounding to the nearest thousand

(e.g., if the answer would be $154,790.34, give 155; or if the answer would be

$154,392.28, give 154).