Reference no: EM132535182

A non-profit must purchase mowers to maintain it's campus. The organization can buy seven EVF mowers that cost $8,500 each and have annual, year-end maintenance costs of $1,950 per mower. The EVF mowers will be replaced at the end of Year 5 and have no value at that time. Alternatively, the non-profit can buy eight AEH mowers to accomplish the same work. The AEH mowers will be replaced after eight years. They each cost $7,500 and have annual, year-end maintenance costs of $2,250 per mower. Each AEH mower will have a resale value of $700 at the end of eight years. The organization's opportunity cost of funds for this type of investment is 9 percent. Because the organization is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers.

Finding a solution with a negative value indicated by a minus sign, not rounding intermediate calculations, and rounding a solution to two decimal places (e.g. 84.02), what is the EAC of the EVF mowers?