Jackson & Sons uses packing machines to prepare its products for shipping. They need to replace their primary packing machine and are considering two different options.

Machine 1 costs $404,300 and lasts 3 years before it needs replaced. The annual aftertax operating cost for the machine is $35,000.

Machine 2 costs $545,700 and should last for 9 years. It has an annual aftertax operating cost of $23,050.

What is the equivalent annual cost of each machine if the required return is 18 percent?

EAC for Machine 1 =

EAC for Machine 2 =