Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $$2,120,000$ and will last for $6$ years. Variable costs are $36$ percent of sales, and fixed costs are $$146,000$ per year. Machine B costs $$4,330,000$ and will last for $10$ years. Variable costs for this machine are $29$ percent of sales and fixed costs are $$121,000$ per year. The sales for each machine will be $$8\mathrm{.}66$ 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.

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

EAC

If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B$?$

EAC