6. Fantasy Company is considering two machines for purchase. The machine is integral to their business, so when it wears out, it will be replaced with a similar machine. The company uses a discount rate of 9% for their investments. Compute the equivalent annual cost of each machine. Initial cost Useful Life Annual maintenance Machine A 219,000 14 years 1,500 per year Machine B 190,000 12 years 2,000 per year EAC of A EAC of B Which should Fantasy choose? r 6. Fantasy Company is considering two machines for purchase. The machine is integral to their business, so when it wears out, it will be replaced with a similar machine. The company uses a discount rate of 9% for their investments. Compute the equivalent annual cost of each machine. Initial cost Useful Life Annual maintenance Machine A 219,000 14 years 1,500 per year Machine B 190,000 12 years 2,000 per year EAC of A EAC of B Which should Fantasy choose? r