Cherin is analyzing two machines to determine which one it should purchase. The company requires a rate of return of $15\%$ and uses straight$-$line depreciation to a zero book value over a machine$$s life. Ignore bonus depreciation and taxes. Machine A has a cost of $$425,000,$ annual operating costs of $$10,000,$ and a life of $7$ years. Machine B costs $$311,000,$ has annual operating costs of $$9,900,$ and a life of $2$ years. Whichever machine is purchased will be replaced at the end of its useful life.

$($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

QUESTION #$1.$ What is the NPV for each machine?

NPV for Machine A $=$

NPV for Machine B $=$

Question #$2$ What is the EAC for each machine?

EAC for Machine A $=$

EAC for Machine B $=$

Question #$3$ Which machine should Cherin purchase based on which method?

ANSWER: Cherin should purchase