The following practice problem has been generated for you:
Given Item A:
Investment cost of $86,378.00
a lifetime of 7 periods
Maintenance cost = $9,136.00
Item B has an investment cost of $88,666.00, a lifetime of 5 periods, with a maintenance cost per period of $5,832.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 6% and determine a conclusion