The following practice problem has been generated for you:
Given Item A:
Investment cost of $57,605.00
a lifetime of 4 periods
Maintenance cost = $10,114.00
Item B has an investment cost of $61,763.00, a lifetime of 8 periods, with a maintenance cost per period of $13,784.00
Calculate the Equivalent Annual Cost (EAC) for each Item using a cost of capital of 12% and determine a conclusion