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Eco-Cool air conditioners cost $400 to purchase, result in electronic bills of $120 per year and last for 8 years. Luxury Air models cost $500,

Eco-Cool air conditioners cost $400 to purchase, result in electronic bills of $120 per year and last for 8 years. Luxury Air models cost $500, result in electronic bills of $100 per year and last for 10 years. The discount rate is 15%.

What are the Equivalent Annual Cost of the Eco-Cool and Luxury Air models?

Which model is more cost effective?

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