You have purchased a machine costing $26,000. The machine will be used for two years, and at the end of this time, its salvage value is expected to be $12,000. The machine will be used 5,000 hours during the first year and 7,000 hours during the second year. The expected annual net savings will be $45,000 during the first year and $50,000 during the second year. If your interest rate is 12%, what would be the equivalent net savings per machine hour? The equivalent net savings are $ per machine hour.
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