You are evaluating two different milling machines $to$ replace your current aging machine. Machine A costs $$245,878,$ has a three$-$year life, and has pretax operating costs $of$ $$64,770$ per year. Machine $B$ costs $$387,055,$ has a five$-$year life, and has pretax operating costs $of$ $$30,018$ per year. For both milling machines, use straight$-$line depreciation $to$ zero over the project$s$ life and assume a salvage value $of$ $$38,368.$ Your tax rate $is34\%$ and your discount rate $is10\%.$

What $is$ the EAC for Machine $A?(Round$ answer $to2$ decimal places. $Do$ not round intermediate calculations$)$

Topic: Capital Budgeting Problem

Year

$1$

$2$

$3$

$4$

Sales

$$11,059$

$$12,840$

$$13,494$

$$10,243$

Costs

$2,443$

$2,686$

$3,452$

$1,225$

$NWC$ Requirements

$332$

$356$

$242$

$0$

What $is$ the project$sNPV?(Round$ answer $to2$ decimal places. $Do$ not round intermediate calculations$).$

Topic: Capital Budgeting Problem

You are evaluating two different milling machines $to$ replace your current aging machine. Machine A costs $$245,878,$ has a three$-$year life, and has pretax operating costs $of$ $$64,770$ per year. Machine $B$ costs

$$387,055,$ has a five$-$year life, and has pretax operating costs $of$ $$30,018$ per year. For both milling machines, use straight$-$line depreciation $to$ zero over the project's life and assume a salvage value $of$ $$38,368.$

Your tax rate $is34\%$ and your discount rate $is10\%.$

What $is$ the EAC for Machine $A?(Round$ answer $to2$ decimal places. $Do$ not round intermediate calculations$)$

Topic: Capital Budgeting Problem