Equivalent annual cost: Your company decided to purchase a machine. Now, the business needs to decide which model to purchase. Two different models, with different characteristics will meet the needs of your business. The purchase cost of machine A is $150,000. The operating cost for the machine (before taso) is $65,000 per year. The machine's expected useful life is 8 years with no salvage value at the end of its useful life. The purchase cost of machine B is $100,000. The operating cost for the machine (before tam is $57,500 per year. The machine's expected useful life is 6 years with no salvage value at the end of its useful life. Neither machine will impact revenue. The networking capital needs of both machines are identical, $10,000. The required return for the project is 10%. The CCA rate for the machines is 20%. The company's marginal income tax rate is 40%. Which machine would you recommend? Calculate the NPV for each machine using the six step approach (nearest dollar without dollar sign ($) or comma dg 15000) Negative cash flow is - 15000): What is the NPV for machine A? What is the NPV for machine B? What is the EAC for machine A? What is the EAC for machine B? 2 Based on your analysis, which machine would you recommend to management? Equivalent annual cost: Your company decided to purchase a machine. Now, the business needs to decide which model to purchase Two different models, with different characteristics will meet the needs of your business, The purchase cost of machine A is $150,000. The operating cost for the machine (before two is $65,000 per year. The machine's expected useful life is 8 years with no salvage value at the end of its useful life The purchase cost of machine B is $100,000. The operating cost for the machine (before ta is $57.500 per year. The machines expected useful life is 6 years with no salvage value at the end of its useful life. Neither machine will impact revenue. The networking capital needs of both machines are identical, $10,000. The required return for the project is 10%. The CCA rate for the machines is 20%. The company's marginal income tax rate is 40%. Which machine would you recommend? Calculate the NPV for each machine using the six step approach (nearest dollar without dollar sign ($) or comma eg. 15000) Negative cash flow is -15000): What is the NPV for machine A? What is the NPV for machine B? What is the EAC for machine A? What is the EAC for machine B? Based on your analysis, which machine would you recommend to management