"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 $275,000, an annual operating cost of $16,500 and a machine life of 5 years.; Machine B as an upfront purchase price of $305,000, an annual operating cost of $15,250 and a machine life of 7 years; If our company has a WACC of 11.0%, which machine has the lower equivalent annual cost (EAC) and what is its EAC?"

		"Machine A / EAC = $79,976"
		"Machine B / EAC = $90,907"
		"Machine B / EAC = $79,976"
		"Machine A / EAC = $335,982"
		"Machine B / EAC = $376,861"
		"Machine A / EAC = $90,907"
		Insufficient data provided to compute answer