You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $$80$ initially, and then requires $$125$ per year in maintenance costs. Machine B costs $$150$ initially, has a life of three years, and requires $$100$ in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. The discount rate is $12$ percent and the tax rate is zero. Calculate the EAC. Which one should you choose? You must use the built$-$in Excel function to answer this question. Negagive answers should display as negative values. Input area

Machine A life in years $2$

initial cost $$80$

annual maintance $$125$

Machine B life in years $3$

Initial cost $$150$

Annual Maintenance $$100$

Discount rate $12\%$

need the NET PRESENT VALUE $($NPV$)$ & Equivalent Annual Cost $($EAC$)$

for both mahines & then choose

FOR THE NPV your formula must include the PV funcition and return a Negative Value.

For the EAC your formula must inclue the PMT function and return a Negative Value.