You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs

$$175$ initially, and then $$80$ per year in maintenance costs. Machine B costs $$245$ initially, has a life of three years, and requires $$195$ 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. $($Negative amounts should be indicated by a minus sign.

Round your answers to $2$ decimal places.$)$

Which one should you choose?

Machine B

Machine A