U 1 2 3 4 5 6 Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,060,000 and will last for six years. Variable costs are 30 percent of sales, and fixed costs are $205,000 per year. Machine B costs $5,247,000 and will last for nine years. Variable costs for this machine are 25 percent of sales and fixed costs are $140,000 per year. The sales for each machine will be $10.3 million per year. The required return is 9 percent, and the tax rate is 22 percent. Both machines will be depreciated on a straight-line basis. The company plans to replace the machine when it wears out on a perpetual basis. 7 8 9 10 11 12 13 14 Calculate the EAC for each machine. (Your answers should be negative values and indicated by minus signs. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 15 16 17 18 19 Machine A 20 21 Machine B 22 23 24 25 Q2 0 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Ready