3. Equivalent Annual Cost Analysis A company is considering the purchase of a machine costing $84,000. The machine will be depreciated using straight line depreciation to a zero book value over the three-year life of the machine and will be replaced. The estimated annual cost to operate the machine is $8,000. The tax rate is 34% and required rate of return is 12%. What is the EAC of this machine? O Determine project cash flows and NPV of project cash flows O NPV = PV; project life N; required return I/Y; CPT PMT PV ordinary = cl_(1+r)' ordinary