The following practice problem has been generated for you:
Given Item A:Investment cost of $60,285.00
a lifetime of 8 periods
Maintenance cost = $2,436.00
Item B has an investment cost of $59,330.00, a lifetime of 9 periods, with a maintenance cost per period of $4,003.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 4% and determine a conclusion