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 35 percent of sales, and fixed costs are $169,000 per year. Machine B costs $4,220,000 and will last for 7 years. Variable costs for this machine are 31 percent of sales and fixed costs are $106,000 per year. The sales for each machine will be $8.44 million per year. The required return is 10 percent and the tax rate is 21 percent. Both machines will be depreciated on a straight-line basis 6:37 If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? if the company plans to replace the machine when it wears out on a perpetual basis.