Econo-Cool air conditioners cost $385 to purchase, result in electricity bills of $167 per year, and last for 5 years. Luxury Air models cost $585, result in electricity bills of $134 per year, and last for 8 years. The discount rate is 22%.

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

Econo-Cool

Luxury Air