Two Machines,A and B,which Perform the Same Functions,have the Following

Multiple Choice

Two machines,A and B,which perform the same functions,have the following costs and lives. $$\begin{array} { c r r } \text { Type } & \text { PV Costs } & \text { Life } \\\text { Machine A } & \$ 6000 & 5 \\\text { Machine B } & \$ 8000 & 7\end{array}$$
Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15%.

A) Machine A because the EAC is $1789.89
B) Machine B because the EAC is $1922.88
C) Machine A because it has lower PV costs
D) Machine B beca