The following practice problem has been generated for you:
Given Item A:
Investment cost of $89,725.00
a lifetime of 8 periods
Maintenance cost = $2,590.00
Item B has an investment cost of $68,368.00, a lifetime of 10 periods, with a maintenance cost per period of $7,722.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 12% and determine a conclusion