ABC is a cosmetic manufacturing company. ABC is considering the purchase of a new packaging machine for its luxury line. The company received two offers from two different brands. TECH brand which is substantially more expensive than the second model from Modern brand. TECH model will not have to be replaced for 10 years, whereas Modern model will need to be replaced in 5 years. The cost of purchasing the two different brand and the cost of operating them annually over their expected lives is provided below: Year 0 1 2 3 3 4 TECH model Modern model Costs in millions Costs in millions ($900) ($400) ($12) (550) (515) (550) ($20) ($60) (520) (560) (520) (560) (525) (525) ($25) (525) ($25) 5 6 7 8 9 10 1. Using a 10% required rate of return, estimate the equivalent annual costs (EAC) for the two machines. 2. Based on your results (EAC), which model do you recommend to ABC? Justify your