1. You are evaluating two different printing machines. Machine A cost RM320,000, has a five-year life, and has pretax operating costs of RM30,000 per year. Machine B cost RM420,000, has a seven- year life, and has pretax operating costs of RM42,000 per year. For both machines, use straight-line depreciation to zero over the machine's life and assume a salvage value of RM50,000. If your company's tax rate is 35 percent and your discount rate is 10 percent, compute the Equivalent Annual Cost (EAC). Which machine do you prefer? Why