QUESTION 1 Precision Tool requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. A Machine it is using has an initial cost of $892,000, annual operating cash flow (OCF) of -$26,300, and a 5-year life. The machine will be replaced at the end of its useful life. What is the EAC of the machine? -$338,737 O $273,750 -$986,806 -$432,854