Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,000,000 and will last for 6 years. Variable costs are 36 percent of sales, and fixed costs are $142,000 per year. Machine B costs $4,410,000 and will last for 10 years. Variable costs for this machine are 27 percent of sales and fixed costs are $75,000 per year. The sales for each machine will be $8.82 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)$3,234,271.91$-10,882,612.27$-2,498,728.09$-4,241,489$-3,837,537.67

(b)	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.)
	(Click to select)$-9,040,592.85$-9,992,234.2$-13,272,370.58$3,572,982.81$-2,160,017.19