In order to make a replacement decision: a firm calculated the equivalent annual cost (EAC) of owning an asset as follows: (hmt; use only EAC costs) Replacement Period 2 4 5 Salvage Value $1420 $1,102 $910 $795 ssso EAC Capital Annual EAC Repair Costs $1,287 $1,082 $976 $812 $673 Repair Costs $400 $600 ssoo $1,200 Costs $189 $298 $437 $592 When should the firm replace its equipment? O O O O in 1 year in 2 years in 3 years in 4 years