Brea purchases a Tesla Truck for $$120,000.$ The truck declines in value by $20\%$of the current value each year. The initial operating cost for Year $1$ is $$3,500,$ which increases by $$400$ each year. MARR is $5\%.$

a$.)$ Determine the EAC $($capital costs$)$ if the truck is used for one year.

b$.)$ Determine the EAC $($capital costs$)$ if the truck is used for five years.

c$.)$ If you only have the option of using the equipment for one year OR for five years, which option do you choose? Why? Tip: Sketch the cash

flow diagram for part

$($a$)$ and part $($b$).$