Question: You are evaluating two different milling machines to replace your current aging machine. Machine A costs $284,088, has a three-year life, and has pretax operating

You are evaluating two different milling machines to replace your current aging machine. Machine A costs $284,088, has a three-year life, and has pretax operating costs of $63,530 per year. Machine B costs $414,834, has a five-year life, and has pretax operating costs of $34,300 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of $40,328. Your tax rate is 34 % and your discount rate is 10 %.

What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations) PLEASE FOLLOW ROUNDING INSTRUCTIONS

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