OceanBlue Inc. is analyzing two machines to determine which one it should purchase. The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has an initial cost of $892,000, annual maintenance cost of $28,200, and a 4-year life with a market salvage value of $50,000. Machine B costs $1,118,000 initially, has annual maintenance costs of $19,500, and a 5-year life with a market salvage value of $65,000. Both machines will be depreciated straight-line to zero. Whichever machine is purchased will be replaced at the end of its useful life. Assuming a 21% tax rate, what is equivalent annual cost (EAC) the for machine A? $28,200 $279,974 $799,320 $24,552 $246,208