A student must chose which car to buy. Car A costs $35,000 to purchase, has annual operating costs of $5000 a year, a projected life of 12 years, and a salvage value of $10,000 at the end of 12 years. Car B costs $25,000 to purchase, has annual operating costs of $4000 a year, will last 8 years and have no salvage value.. What are the equivalent annual costs of each car and which car should the student purchase ? BUT Now assume that the car above is for a pizza delivery business which pays taxes at 25% and the purchase price for each car can be depreciated to its salvage value using straight line depreciation over its useful lifetime. Assume that operating expenses are fully tax deductible as they are incurred. What are the EAC's now and which car should the student purchase? Assume that the cost of capital is 6%