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The equipment below is required for your business. Assume each will be replaced as it wears out. The required return is 15%. Ignore taxes. Machine

The equipment below is required for your business. Assume each will be replaced as it wears out. The required return is 15%. Ignore taxes. Machine A Machine B Initial cost $200,000 $300,000 Operating Cost/year 15,000 17,500 Life 8 yrs 10 yrs What is the equivalent annual cost (EAC) of machine B? A. -$61,664 B. -$77,276 C. -$85,776 D. -$90,163 E. -$94,113

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