Question 1176661
Here's how to calculate the annual operating cost:

1.  **Calculate Interest Cost:**
    * $17,500 * 0.07 = $1,225

2.  **Calculate Depreciation Cost:**
    * $17,500 * 0.11 = $1,925

3.  **Calculate Total Annual Operating Cost:**
    * $1,225 (interest) + $1,925 (depreciation) + $1,400 (expenses) = $4,550

Therefore, the annual operating cost is $4,550.00.