Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $$3,130,000$ and will last for six years. Variable costs are $35$ percent of sales, and fixed costs are $$270,000$ per year. Machine B costs $$5,351,000$ and will last for nine years. Variable costs for this machine are $30$ percent of sales and fixed costs are $$200,000$ per year. The sales for each machine will be $$11\mathrm{.}6$ million per year. The required return is $8$ percent, and the tax rate is $21$ percent. Both machines will be depreciated on a straight$-$line basis. The company plans to replace the machine when it wears out on a perpetual basis. Calculate the EAC for each machine. $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

Which machine should the company choose?

multiple choice

Machine A

Machine B