Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $1,850,000 and will last for 5 years. Variable costs are 37 percent of sales, and fixed costs are $149,000 per year. Machine B costs $4,300,000 and will last for 9 years. Variable costs for this machine are 31 percent of sales and fixed costs are $125,000 per year. The sales for each machine will be $8.6 million per year. The required return is 10 percent and the tax rate is 35 percent. Both machines will be depreciated on a straight-line basis

a) if a company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A?

b) Also what is EAC for machine B