Given the following information: $\begin{array}{lr}\text { Sales Price } & 210 \\ \text { VC } & 50 \\ \text { FC } & 500,000 \\ \text { Tax Rate } & 21 \% \\ \text { Rate } & 10 \% \\ \text { Machine Cost } & 2,000,000 \\ \text { Life } & 5\end{array}$ Depreciation Straight Line Calculate the equivalent annual cost of the machine. (Round to 2 decimals)

Step 1 ：Given the following information: Sales Price = $210, Variable Cost (VC) = $50, Fixed Cost (FC) = $500,000, Tax Rate = 21%, Rate = 10%, Machine Cost = $2,000,000, Life = 5 years.

Step 2 ：We calculate the annual depreciation by dividing the machine cost by its life: \(\frac{2000000}{5} = 400000.0\)

Step 3 ：We calculate the annual cost of capital by multiplying the machine cost by the rate: \(2000000 \times 0.1 = 200000.0\)

Step 4 ：We calculate the tax shield from depreciation by multiplying the annual depreciation by the tax rate: \(400000.0 \times 0.21 = 84000.0\)

Step 5 ：We calculate the net annual cost by adding the annual depreciation and the annual cost of capital, and then subtracting the tax shield from depreciation: \(400000.0 + 200000.0 - 84000.0 = 516000.0\)

Step 6 ：Final Answer: The equivalent annual cost of the machine is \(\boxed{516000.00}\)