Different milling machines to replace current aging machine

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Reference no: EM131979137

You are evaluating two different milling machines to replace your current aging machine. Machine A costs $240709, has a three-year life, and has pretax operating costs of $64025 per year. Machine B costs $405710, has a five-year life, and has pretax operating costs of $32631 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $37963. 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)

Reference no: EM131979137

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