Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for $20,000, which will generate cash flows of $10,000 at the end of each of the next 6 years.

Alternatively, the company can spend $12,000 for equipment that can be used for 3 years and will generate cash flows of $10,000 at the end of each year (System B).

If the companys WACC is 5% and both projects can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate calculations. Round your answer to the nearest cent.