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Renegade Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2.85 million and will last for six

Renegade Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2.85 million and will last for six years. Variable costs are 33% of sales, and fixed costs are $1,959,818 per year. Machine B costs $4.88 million and will last for nine years. Variable costs for this machine are 22% of sales and fixed costs are $1,284,815 per year. The sales for each machine will be $10.1 million per year. The required return is 9 %, and the tax rate is 38%. Both machines will be depreciated on a straight-line basis. The company plans to replace the machine when it wears out on a perpetual basis. Calculate the EAC for machine A. (Round answer to 0 decimal places. Do not round intermediate calculations)

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