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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
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