Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,360,000 and will last for 4 years. Variable costs are 35 percent of sales, and fixed costs are $130,000 per year. Machine B costs $4,580,000 and will last for 6 years. Variable costs for this machine are 32 percent of sales and fixed costs are $98,000 per year. The sales for each machine will be $9.16 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:

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.)

If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B?(Do not round your intermediate calculations.)