The following practice problem has been generated for you:
Given Item A:
Investment cost of $66,677.00
a lifetime of 8 periods
Maintenance cost = $9,475.00
Item B has an investment cost of $86,642.00, a lifetime of 6 periods, with a maintenance cost per period of $6,147.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 11% and determine a conclusion