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Econo - Cool air conditioners cost $ 3 5 5 to purchase, result in electricity bills of $ 1 6 1 per year, and last

Econo-Cool air conditioners cost $355 to purchase, result in electricity bills of $161 per year, and last for 5 years. Luxury Air models cost $555, result in electricity bills of $122 per year, and last for 8 years. The discount rate is 20%.
a. What is the equivalent annual cost of the Econo-Cool model?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. What is the equivalent annual cost of the Luxury Air model?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
c. Which model is more cost-effective?
multiple choice 1
Econo-Cool
Luxury Air
d-1. Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. What are the equivalent annual cost of the Econo-Cool and Luxury Air model?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
d-2. Which model is more cost-effective?
multiple choice 2
Econo-Cool
Luxury Air

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