Answer:
Machine A; because it will save the company about $13,406 a year
Explanation:
The computation is shown below:
Equate Annual Cost = PV of Cash Outflow ÷  PVAF (r%, n)
For Machine A:
Year            CF          PVF  at 14.6%           Disc CF
0            $3,18,000.00    1.0000                 $3,18,000.00
1              $ 8,700.00   0.8726                 $7,591.62
2             $8,700.00   0.7614               $6,624.45
3	$      8,700.00           0.6644	$      5,780.50
PV of Cash Outflow                               $3,37,996.58
PVAF(14.6%,3)                                          2.2985
PV of Cash Outflow                            $1,47,053.69
For Machine B:
Year             CF                PVF at 14.6%                  Disc CF
0              $2,47,000.00       1.0000                    $2,47,000.00
1                $9,300.00       0.8726                        $8,115.18
2               $9,300.00       0.7614                        $7,081.31
PV of Cash Outflow                                          $2,62,196.49
PVAF(14.6%,2)              1.6340
PV of Cash Outflow     $1,60,459.86
So the machine cost would be purchased as it lower the cost by $13,406.17