(Equivalent annual cost calculation) The Templeton Manufacturing and Distribution Company of Tacoma, Washinglon, is conternplating the purchaso of a new conveyor bet system for one of is reglonal distribution facilities. Both altematives will accompish the same task but the Eclpse Model is substantally more expensive than the Sabre Model and wil notheve to be replaced for 10 years, whereas the cheaper model will need to be replaced in just 5 years. The costs of purchasing the two systoms and the costs of operatrg them annualy over ther axpoctod ived is provided below: a. Templeton typically ovaluates investments in plant improvements using a required rate of tetum of 12 percent, What are the NPVs for the two syslems? b. Calculate the equivalent annual costs for the two systerns. c. Based on your analysis of the two systems using both their NPV and EAC, which syatom do you recommend the company pick? Why? a. The NPV for Eclipse at a discount rate of 12% is $ (Round to the neares dolar) The NPV for Bobre at a discount rate of 12% is 1 (Round to the nearest dolae.) b. Eelipse's oquivalent annual cost (EAC) at a dicount rate of 12% is $ (Round to the nearest dollar) Sabre's equivalent annual cost (EAC) at a discount rate of 12% is i (Round to the neareat dollar) c. Which of the alternatives do you think Templeton should select? Why? (Select the best choice below.) A. Sabre's model should be selected because it has the Highest NPV. (Click on the icon in order to copy its contents into a spreadsneet.)