Help Save & Exit Problem 10-27 Comparing Mutually Exclusive Projects (L04] 10 Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,140,000 and will last for six years. Variable costs are 36 percent of sales and fixed costs are $280,000 per year. Machine B costs $5,364,000 and will last for nine years. Variable costs for this machine are 31 percent of sales and fixed costs are $205,000 per year. The sales for each machine will be $11.7 million per year. The required return is 9 percent, and the tax rate is 22 percent. Both machines will be depreciated on a straight-line basis. The company plans to replace the machine when it wears out on a perpetual basis. points Skipped Calculate the EAC for each machine. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g.. 1,234,567.89.) System A System B Which machine should the company choose? Machine B O Machine A