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Vandalay Industries is considering the purchase of a new machinefor the production of latex. Machine A costs $1,970,000 and willlast for 5 years. Variable costs are 36 percent of sales, and fixedcosts are $146,000 per year. Machine B costs $4,430,000 and willlast for 8 years. Variable costs for this machine are 31 percent ofsales and fixed costs are $80,000 per year. The sales for eachmachine will be $8.86 million per year. The required return is 10percent and the tax rate is 35 percent. Both machines will bedepreciated on a straight-line basis.(a) If the company plans to replace the machine when it wearsout on a perpetual basis, what is the EAC for machine A? (Do notround your intermediate calculations.) (b) If the company plans toreplace the machine when it wears out on a perpetual basis, what isthe EAC for machine B? (Do not round your intermediatecalculations.)