Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,100,000 and will last for 6 years. Variable costs are 35 percent of sales, and fixed costs are $204,000 per year. Machine B costs $6,100,000 and will last for 9 years. Variable costs for this machine are 30 percent of sales and fixed costs are $165,000 per year. The sales for each machine will be $8.86 million per year. The required return is 10 percent and the tax rate is 35 percent. Both machines will be depreciated on a straight-line basis Required: (a) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? (Do not round your intermediate calculations.) (b) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B? (Do not round your intermediate calculations.) Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,350,000 and will last for 8 years. Variable costs are 39 percent of sales, and fixed costs are $169,000 per year. Machine B costs $4,430,000 and will last for 11 years. Variable costs for this machine are 32 percent of sales and fixed costs are $97,000 per year. The sales for each machine will be $13.5 million per year. The required return is 10 percent and the tax rate is 35 percent. Both machines will be depreciated on a straight-line basis Required: (a) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? (Do not round your intermediate calculations.) (b) If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B? (Do not round your intermediate calculations.)