Grace is purchasing a walk-in freezer for her restaurant. Model A has a purchase price of $38,000 and is expected to last for 15 years Model B has a purchase price of $29,500 and is expected to last for 12 years. Both models have residual values of zero, and there are no differences in operating costs between the two alternatives, a) If the Grace's cost of capital is 9% compounded annually, which equipment alternative has the lower equivalent annual cost (EAC)? (Click to select)y has the lower equivalent annual cost b) Rounded to the nearest dollar, how much lower is the EAC of the preferred alternative? (Round your final answer to 2 decimal places.) EAC