Example: Equivalent Annual Cost Analysis Machine A - Machine B - Initial Cost =$150,000 - Initial Cost =$100,000 - Pre-tax operating cost - Pre-tax operating cost =$65,000=$57,500 - Expected life is 8 years - Expected life is 6 years The machine chosen will be replaced indefinitely and neither machine will have a differential impact on revenue. No change in NWC is required. The required return is 10%, the applicable CCA rate is 20% and the tax rate is 40%. Which machine should you buy