GSU Motor Works needs to select an assembly line for producing their new SUV. They have two options:

• Option XYZ is a highly automatedassembly line that has a large up-frontcost but low maintenance cost over the years. This option will cost $114 million today with a yearly operating cost of $40 million. The assembly line will last for 6 years and be sold for $48 million in 6 years.
• Option GHI is a cheaper alternative with less technology, a longer life, but higher operating costs. This option will cost $168 million today with an annual operating cost of $32 million. This assembly line will last for 10 years and be sold for $23 million in 10 years.

The firms cost of capital is 16%. Assume a tax rate of zero percent.

1. The equivalent annual cost (EAC) for Option XYZis $ million.

2. The equivalent annual cost (EAC) for Option GHIis $ million.

USE FINANCIAL CALCULATOR PLEASE OR EQUATION