Filkins Fabric Company has the opportunity to invest in one of two mutually exclusive knitting machines that will produce a product it will need for the foreseeable future.Machine A costs $190,000 and realizes after-tax inflows of $87,000 per year for 3 years.Machine B costs $360,000 and realizes after-tax inflows of $98,300 per year for 6 years.Assume that machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines.The cost of capital is 14%.(Ignore CCA)

Required:What is the equivalent annual annuity for each machine?Which machine should be chosen?