The following practice problem has been generated for you:
Given Item A:
Investment cost of $52,447.00
a lifetime of 6 periods
Maintenance cost = $6,299.00
Item B has an investment cost of $51,281.00, a lifetime of 6 periods, with a maintenance cost per period of $8,244.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 2% and determine a conclusion