You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $$125$ initially, and then $$170$ per year in maintenance costs. Machine B costs $$195$ initially, has a life of three years, and requires $$145$ 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.