Suppose Wily Fox Corporation is considering choosing one of two possible machines. Machine A costs $5,000 and has a 5-year life, during which it will produce an annual cash flow of 2,000. Machine B costs $12,000 and has a 3-year life, during which it will produce an annual cash flow of $5,500. Your company has to replace the machine regardless of your choice. The company's discount rate is 12%. Calculate the equivalent annual annuity (or EAA) for Machine A and Machine B. Which machine should the company choose?

\begin{tabular}{|c|c|c|} \hline Discount rate & & \\ \hline Year & Machine A & Machine B \\ \hline 0 & ($5,000) & ($12,000) \\ \hline 1 & $2,000 & $5,500 \\ \hline 2 & $2,000 & $5,500 \\ \hline 3 & $2,000 & $5,500 \\ \hline 4 & $2,000 & \\ \hline 5 & $2,000 & \\ \hline \end{tabular} Therefore, Wily Fox Corporation should choose which project