The FIN340 Company is evaluating the purchase of 2 competing machines and wants to choose the machine with the lower equivalent annual cost (EAC); Machine A has an upfront purchase price of $520,000, an annual operating cost of $31,200 and a machine life of 3 years.; Machine B as an upfront purchase price of $780,000, an annual operating cost of $39,000 and a machine life of 5 years; If our company has a WACC of 12.4%, which machine has the lower equivalent annual cost (EAC) and what is its EAC?

Machine A / EAC = $249,191

Machine A / EAC = $257,528

Machine B / EAC = $249,191

Machine B / EAC = $257,528

Machine A / EAC = $594,425

Machine B / EAC = $919,204

Insufficient data provided to compute an answer