Choose the correct answer for the following question:

A firm is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a $12$ percent rate of return and uses straight$-$line depreciation to a zero book value over the life of the machine. Machine A has a cost of $$600,000,$ annual operating costs of $$52,000,$ and a $8-$year life. Machine B costs $$365,000,$ has annual operating costs of $$87,000,$ and a $5-$year life. The firm currently pays no taxes. Which machine should be purchased and why $($Hint: calculate and compare the EAC of the two machines$)?$

A$.$ Machine A; because it will save the company about $$8,634$ a year

B$.$ Machine A; because it will save the company about $$12,507$ a year

C$.$ Machine B; because it will save the company about $$10,610$ a year

D$.$ Machine A; because it will save the company about $$15,473$ a year

E$.$ Machine B; because it will save the company about $$5,807$ a yea