A Furniture Manufacturer Is Planning on Buying a New Industrial

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?

A) $36,520
B) $47,892
C) $52,254
D) $55,333
E) $68,540