You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $$130$ initially, and then requires $$175$ per year in maintenance costs. Machine B costs $$200$ initially, has a life of three years, and requires $$150$ in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine.

The discount rate is $11$ percent and the tax rate is zero. Calculate the EAC.