Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A Posts $2,350,000 and will last for 6 years. Variable costs are 38 percent of sales, and fixed costs are $168,000 per year. Machine B costs $4,440,000 and will last for 8 years. Variable costs for this machine are 30 percent of sales and fixed costs are $87,000 per year. The sales for each machine will be $8.88 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. Required: (a) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? (Do not round your intermediate calculations.) (Click to select) (Click to select) (b) 5-4,289,702.83 to replace the machine when it wears out on a perpetual basis, what is the EAC for round your intermediate calculations.) $ 4,741.250.5 $-2,705,054.01 $3,066.945.99 $-11,781.215.42 eBook & Resources