AT&T is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Its discount rate is 11.1%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, what is the annual cost of each model as an equivalent annual annuity (EAA)? Which should it choose? (Note: dollar amounts are in thousands.) Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year6 Year 7 Long Life -$204.0 -$3.8 -$3.8 -$3.8 -$3.8 -$3.8 -$3.8 -$3.8 Short Life -$101.4 -$1.7 -$1.7 -$1.7 -$1.7 a. The annual cost of Long life model as an equivalent annual annuity (EAA) is (Round to the nearest dollar) The annual cost of Short life model as an equivalent annual annuity (EAA) is $ (Round to the nearest dollar) b. Based on the costs of each model, which should it choose? (Select the best choice below) O(No answer given) OAT&T should choose Short Life because the equivalent annual annuity of its costs is smaller. OAT&T should choose Long Life because the equivalent annual annuity of its costs is smaller. OAT&T should choose Long Life because it lasts longer. OAT&T should choose Short Life because the NPV of its costs is smaller