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 NPV = PV: project life N; required return I/Y: CPT PMT 1- 1 (1+r) PV ordinary = =Cl r