The choices for a)

A.-4734887

B.-4283945.83

C.-7972914

D-3206026

The choices for b)

A. -2691749

B. 3535520

C -11281314

D -10202826

E -10206903

Score: 30/40 Points 75 % Question 4 (of 4) 4. Award:0 out of 10.00 points Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $1,850,000 and will last for 5 years. Variable costs are 37 percent of sales, and fixed costs are $149,000 per year. Machine B costs $4,300,000 and will last for 9 years. Variable costs for this machine are 31 percent of sales and fixed costs are $125,000 per year. The sales for each machine will be $8.6 million per year. The required return is 10 percent and the tax rate is 35 percent. Both machines will be depreciated on a straight-line basis Required: (a) if the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? (Do not round your intermediate calculations.) $3,066,324.66 (b) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B? (Do not round your intermediate calculations.) $3,196,417.5 eBook & Resources Guy Kawasaki's....ppt A Score: 30/40 Points 75 % Question 4 (of 4) 4. Award:0 out of 10.00 points Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $1,850,000 and will last for 5 years. Variable costs are 37 percent of sales, and fixed costs are $149,000 per year. Machine B costs $4,300,000 and will last for 9 years. Variable costs for this machine are 31 percent of sales and fixed costs are $125,000 per year. The sales for each machine will be $8.6 million per year. The required return is 10 percent and the tax rate is 35 percent. Both machines will be depreciated on a straight-line basis Required: (a) if the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? (Do not round your intermediate calculations.) $3,066,324.66 (b) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B? (Do not round your intermediate calculations.) $3,196,417.5 eBook & Resources Guy Kawasaki's....ppt A