Question: Precision Dyes is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 12 percent and uses

Precision Dyes is analyzing two machines to determine which one it

Precision Dyes is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 12 percent and uses straight-line depreciation to a zero over the life of its equipment. After did a NPV calculation for each of the machine, machine A has a NPV of -$593,900.00, and it has four years of life. Machine B has a NPV of -$966,646.93, and has a seven-year life. Whichever machine is purchased will be replaced at the end of its useful life. What is the EAC difference between the two machines and which machine should the company buy? O A. $24,321.02; choose A OB. $24,321.02; choose B O C. $16,277.16; choose A $16,277.16; choose B D. O E. None of the above

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