Problem $8-18$ Comparing Mutually Exclusive Projects

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $\backslash (\backslash$$ $3,054,000\backslash )$ and will last for six years. Variable costs are $35$ percent of sales, and fixed costs are $\backslash (\backslash$$ $200,000\backslash )$ per year. Machine B costs $\backslash (\backslash$$ $5,238,000\backslash )$ and will last for nine years. Variable costs for this machine are $30$ percent of sales and fixed costs are $\backslash (\backslash$$ $135,000\backslash )$ per year. The sales for each machine will be $\backslash (\backslash$$ $10\mathrm{.}2\backslash )$ million per year. The required return is $10$ percent, and the tax rate is $23$ 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. Calculate the EAC for each machine.

Note: Your answers should be negative values and indicated by minus signs. Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$