6) Office Automation, Inc. must choose between two copiers, the XX40 or the RH45.

The XX40 costs $900 and will last for three years. The copier will require $120 in maintenance each year.

The RH45 costs $1,400 and will last five years. The copier will require $110 in maintenance each year.

The appropriate discount rate for both machines is 15%. Which copier should the company choose and why? (Use Equivalent annual cost to answer this question)

a. EAC for XX40: ______________

b. EAC for RH45: _______________

c, Which copier should you chose and why? __________________________________________