The Downtown Athletic Club must choose between two mechanical tennis ball throwers. Machine A costs less than Machine B but will not last as long. The cash outflows from the two machines are:

	0	1	Years 2	3	4	5
Machine:
A	$695,000	$42,500	$42,500	$42,500	$42,500
B	$750,350	$40,125	$40,125	$40,125	$40,125	$40,125

Which machine should it choose? You should give an answer based on a valid comparison of the cost of the two machines by computing the equivalent annual cost (EAC) of each machine. The appropriate discount rate for the cash outflows is 14%.