3. (20%) GHI company wants to buy an air conditioner. There are two options in the market. The discount rate is 12%. Option A: Super air conditioner cost $300 to purchase, can be used for 5 years, and the electricity bill is $150 per year. Option B: Excellent air conditioner cost $500 to purchase, can be used for 8 years, and the electricity bill is $100 per year. a) What are the equivalent annual costs (EAC) of the Super and Excellent air conditioner models? b) Which model is more cost-effective (with lower cost)? c) If the inflation rate is expected to be 10% per year, redo a.) and b.)