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1) A firm has to choose between the following two machines. Machine A has a life span of two years, while machine B lasts for

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1) A firm has to choose between the following two machines. Machine A has a life span of two years, while machine B lasts for three years. Whenever a machine breaks down, the company will replace it with a new one. Machine CF1 CF3 CF. -288 -322 -88 CF2 -100 -100 -122 The opportunity cost of capital is 12%. Which machine should the firm buy? What is the EAC for machines A and B

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