A company uses packing machines to prepare its products for shipping. One machine costs -$500,000 and lasts 10 years before it needs replaced. The machine will be worthless after 10 years. The annual after-tax cash flow per machine is -$100,000. What is the equivalent annual cost (EAC) of one machine if the required rate of return is 18 percent? Note that the negative sign used for the problem and the answers below indicates that they are costs on outflows.

a. -$949,408.63

b. -$449,408.63

c. -$50,591.37

d. -$211,257.32