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 $$404,900$ and lasts $5$ years before it needs replaced. The annual aftertax operating cost for the machine is

$$37,200.$

Machine $2$ costs $$534,000$ and should last for $7$ years. It has an annual aftertax operating cost of $$24,150.$

What is the equivalent annual cost of each machine if the required return is $12$ percent?

EAC for Machine $1=$

EAC for Machine $2=$