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Question 15 4 pts You are evaluating two different milling machines to replace your current aging machine. Machine A costs $260,647, has a three-year life,
Question 15 4 pts You are evaluating two different milling machines to replace your current aging machine. Machine A costs $260,647, has a three-year life, and has pretax operating costs of $60,929 per year. Machine B costs $397,554, has a five-year life, and has pretax operating costs of $33,951 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $42,626. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations)
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