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Current Attempt in Progress You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in
Current Attempt in Progress You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $8,000 and is expected to run for 6 years; Model B is more expensive, with a price of $13,000, and has an expected life of 9 years. The annual maintenance costs are $760 for Model A and $600 for Model B. Assume that the opportunity cost of capital is 9 percent. Calculate equivalent annual costs (EAC) of each models. (Do not round the discount factor. Round intermediate calculations and final answers to 2 decimal places, e.g. 15.25.) EAC of Model A is EAC of Model B is $ Which one should you buy? You should buy Save for Later Attempts: 0 of 3 used Submit
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