Braveheart Pty Ltd has a choice of two new machines. They have different lives and capacities for production. If our required rate of return is 8% calculate the EAA for both machines based on the following cash flows:

year         machine 1           machine 2

0                (100,000 )             (150,000)

1                $40,000                  $38,000

2                 $40,000                  $38,000

3                 $40,000                  $38,000

4                                                $38,000

5                                                 $38,000

Calculate NPV.