Titanic Tools Uses Tool and Die Machines to Produce Machinery

Titanic Tools uses tool and die machines to produce machinery for other firms. The initial cost of one customized tool and die machine is $1.8 million. This machine costs $16,000 a year to operate.
Each machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this
Machine if the required return is 14%? Ignore taxes.

A) $680,416.08
B) $692,113.27
C) $703,897.29
D) $762,408.16
E) $791,316.67