The options in the drop down are Machine A or Machine B.

Problem 11.22 (Solution Video) You are trying to choose between purchasing one of two machines for a factory. Machine A costs $16,000 to purchase and has a three-year life. Machine B costs $17,700 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 14 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 $ Which machine should you choose? You should choose