D Question 19 Johnson, Inc. has decided to purchase a new machine. Johnson will buy one of two machines, and each machine costs $2.500. Machine A has a four-year life, a salvage value of $1,000, and expenses of $875 per year. Machine B has a five-year life, a salvage value of $500, and expenses of $830 per year. Whichever machine is used, revenues for this project are $1.200 per year and machines will be replaced at the end of their lives. The machines will be sold at their salvage value at the end of their lives. Using straight-line depreciation to the salvage value, a tax rate of 35%, and a cost of capital of 20%, which of the following statements is correct? (Choose all statements that are correct) Machine A has the lower EAC Machine Blus the lower EAC Machine A has the higher total cost (TC). Machine B has the higher total cost (TC), Machine A should be chosen Machine B should be chosen