6. Tipler air conditioners cost $550 to purchase, result in electricity bills of $200 per year, and last for 5 years. On the other hand, Tipsy air conditioners cost $800 to purchase, result in electricity bills of $120 per year, and last for 8 years. The cost of capital is 15%.

A. What is the equivalent annual cost of the Tipler model?

B. What is the equivalent annual cost of the Tipsy model?

C. Which model is more cost-effective?