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Gold Star Industries is contemplating a purchase of computers. The firm has narrowed its choices to the SAL 5 0 0 0 and the HAL
Gold Star Industries is contemplating a purchase of computers. The firm has narrowed its choices to the SAL and the HAL The company would need six SALs, and each SAL costs $ and requires $ of maintenance each year. At the end of the computers eightyear life, each one could be sold for $ Alternatively, the company could buy seven HALs. Each HAL costs $ and requires $ of maintenance every year. Each HAL lasts for six years and has a resale value of $ at the end of its economic life. The company will continue to purchase the model that it chooses today into perpetuity, and the tax rate is percent. Assume that the maintenance costs occur at yearend. Depreciation is straightline to zero. What is the EAC of each model if the appropriate discount rate is percent?
Note: Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg
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