A machine costing $450,000 has a useful life of six years, after which time its estimated present value of resale will be $25,800. The present value of the total running costs over the next six years is $82,280. The company's cost of capital is 10%, and the cumulative present value annuity factor for 6 years at 10% is 4.355. What is the equivalent annual cost of using the machine if it were bought and replaced every six years in perpetuity (to the nearest dollar)?

Togue Co is investigating how often it should replace its company car fleet. It is considering replacement every two, three, four or five years. Based on Togue Co's cost of capital of 11%, the cumulative present value annuity factors (AF) are: 2 years: 1.7133 years: 2.4444 years: 3.1025 years: 3.696 The following negative NPVs of cash flows have been obtained: - 2 years replacement: $149,308 - 3 years replacement: $209,142 - 4 years replacement: $254,893 - 5 years replacement: $310,860 If Togue Co adopts the optimal replacement cycle, what will be the minimum equivalent annual cost (to the nearest dollar)?