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

$$150$ initially, and then requires $$105$ per year in maintenance costs. Machine B costs $$220$ initially, has a life of three years, and

requires $$170$ in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine.

The discount rate is $13$ percent and the tax rate is zero. Calculate the EAC.

Note: Negative amounts should be indicated by a minus sign. Round your answers to $2$ decimal places.

Answer is complete but not entirely correct.

Which one should you choose?

Machine B

Machine A $o.$