Two machines, A and $B,$ which perform the same functions, have the following costs and lives.

$\backslash$table$[[$Type$,$PV Costs,Life$],[$Machine A$,$$$6,700,5],[$Machine B$,$$$8,700,7]]$

Which machine would you choose? The two machines are mutually exclusive and the cost of capital is $15$ percent.

Mustiple Choice

Machine B$,$ because the EAC $$2,091\mathrm{.}14$

Machine A$,$ because the EAC IS $$1,998\mathrm{.}71$

Machine $B,$ because lt has longer life

Machine A$,$ because th has lower PV costs