Question: I'm having a hard time solving this problem, can you please help? You are trying to choose between purchasing one of two machines for a

I'm having a hard time solving this problem, can you please help?

You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,400 to purchase and has a three-year life. Machine B costs $17,300 to purchase but has a four year life. Regardless of which machine you purchase, it will have to be replaced at the end of its operating life. Assume a marginal tax rate of 35 percent and a discount rate of 12 percent.

Calculate the equivalent annual costs (EAC) of each machines.(Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.27.)

Equivalent Annual Cost (EAC) of machine A?

Equivalent Annual Cost (EAC) of machine B?

Thanks!

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