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In 2012, a company has an upfront cost of $447,000 and annual operating costs of $13,500...

In 2012, a company has an upfront cost of $447,000 and annual operating costs of $13,500 over its 4-year life. Machine Y costs $400,000 upfront and has annual operating costs of $6,460 over its 3-year life. Whichever machine is purchased will continue to be replaced at the end of its useful life. If the required return is 17.00% for both machine, what is the absolute value of the dollar difference between the EACs of the two machines?

$10,767

$11,043

$11,319

$11,595

$11,871
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