Cotner Clothes Inc. is considering the replacement of its old knitting machine. Two new models are available: a) Machine 190-3, which has a cost of $190,000, a 3-year expected life, and after-tax cash flows of $87,000 per year. b) Machine 360-6, which has a cost of $360,000, a 6-year expected life, and after-tax cash flows of $98,000 per year. Assume Cotner's WACC is 14%. Calculate the equivalent annual annuity (EAA) of Machine 190-3.

Assume Cotner's WACC is 14%. Calculate the equivalent annual annuity (EAA) of Machine 360-6.