The following practice problem has been generated for you:
Given Item A:
Investment cost of $91,235.00
a lifetime of 8 periods
Maintenance cost = $3,408.00
Item B has an investment cost of $89,998.00, a lifetime of 10 periods, with a maintenance cost per period of $2,211.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 8% and determine a conclusion