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Question 16 4 pts You are evaluating two different milling machines to replace your current aging machine. Machine A costs $235,352, has a three-year life,
Question 16 4 pts You are evaluating two different milling machines to replace your current aging machine. Machine A costs $235,352, has a three-year life, and has pretax operating costs of $67,426 per year. Machine B costs $433,321, has a five-year life, and has pretax operating costs of $31,844 per year. For both milling machines, use straight- line depreciation to zero over the project's life and assume a salvage value of $37,570. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A? (Round answer to O decimal places. Do not round intermediate calculations)
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