Hollywood Tabloid needs a new state$-$of$-$the$-$art camera to produce its monthly magazine. The company is looking at two cameras that are both capable of doing the job and has determined the following:

Camera $1$ costs $$5,500.$ It should last for eight years and have annual maintenance costs of $$300$ per year. After eight years, the magazine can sell the camera for $$350.$

Camera $2$ costs $$5,000.$ It will also last for eight years and have maintenance costs of $$850$ in year three, $$900$ in year five, and $$1,000$ in year seven. After eight years, the camera will have no resale value. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places.$)$

Required:

$1-$a$.$ Assume that an interest rate of $8\%$ properly reflects the discount rate in this situation and that maintenance costs are paid at the end of each year. Determine the total cost of cameras.

$1-$b$.$ Which camera should Hollywood Tabloid purchase?