You are evaluating two different milling machines to replace your current aging machine. Machine A costs $247,014, has a three-year life, and has pretax operating costs of $60,089 per year. Machine B costs $410,129, has a five-year life, and has pretax operating costs of $32,734 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of $43,450. Your tax rate is 34 % and your discount rate is 10 %.

What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations)

Topic: Capital Budgeting Problem