Calculate eac for both the models

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Model A costs $9,300 and is expected to run for 7 years; The annual maintenance costs are $820 for model A

Model B costs $15,900 and has an expected life of 9 years; The annual maintenance cost are $710 for model B.

Assume that the opportunity cost of capital is 9 percent.

Calculate EAC for both the models.

(Round intermediate calculations and final answers to 2 decimal places, e.g. 15.25.)

Please explain how you retrieved your answer

Reference no: EM131020711

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