"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 $165,500, an annual operating cost of $33,100 and a machine life of 3 years.; Machine B has an upfront purchase price of $258,000, an annual operating cost of $16,770 and a machine life of 6 years; If our company has a WACC of 15.0%, which machine has the lower equivalent annual cost (EAC) and what is its EAC?"

"$84,943 / Machine A"

"$241,075 / Machine B"

"$321,466 / Machine B"

"$105,585 / Machine B"

"$105,585 / Machine A"

"$321,466 / Machine A"

"$84,943 / Machine B"

"$80,391 / Machine A"