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You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,400 to purchase and has a three-year life.

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You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,400 to purchase and has a three-year life. Machine B costs $18,000 to purchase but has a four year life. Regardless of which machine you purchase, it will have to be replaced at the end of its operating life. Assume a marginal tax rate of 35 percent and a discoun rate of 13 percent Calculate the equivalent annual costs (EAC) of each machines. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.27.) Equivalent Annual Cost (EAC) of machine A $ Equivalent Annual Cost (EAC) of machine B Which machine should you choose? You should choose

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