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A treasurer of a large corporation is considering to teplace the old lathe. She narrowed down the alternatives inlo 3 . The frst machine wil

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A treasurer of a large corporation is considering to teplace the old lathe. She narrowed down the alternatives inlo 3 . The frst machine wil cost $66500, has a salvage value of $12400, a usehul life of 11 yoars, and the annual operating cost of $4150. The second machine will cost $57500, has a salvage value of $13500, a usodul life of 9 years, and the annual operating cost of $4500. The third machine will cost 575000 . has a salvage value of $11000, a useful life of 15 years, and the annual coperating cost of $3650. The diecount rate is 12 percent. Which of these allematives is the best based on equivalent annual cost (EAC)? What is the equivalent annual cost of the best machine? 14378143671423814358

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