J&J Automotive is analyzing two machines to determine which one they should purchase. The company requires a 10% rate of return and the machinery belongs in a 30% CCA class. Machine A has a cost of $427,000, annual operating costs of $13,000, and a 4-year life. Machine B costs $390,000, has annual operating costs of $6,500, and has a 3-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should J&J purchase and why? Ignore taxes.

Question 15 options:

	Machine A; because its EAC is $122,343.19
	Machine A; because its EAC is $14,551.42 less than that of Machine B
	Machine B; because its EAC is $75,112.09
	Machine B; because its EAC is $15,618.74 less than that of Machine A
	None of the above