Kim Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different models: HCC and LCC; both are expected to last five years and are equally efficient. HCC has a higher capital cost but lower operating costs, while LCC has a lower capital cost but higher operating costs. The cash flows (in millions) are listed below. Kims WACC is 7%. What unit would you recommend? If WACC changes to 9%, which unit would you recommend?

t =	0	1	2	3	4	5
HCC	-600	-50	-50	-50	-50	-50
LCC	-100	-175	-175	-175	-175	-175

Group of answer choices

LCC ; HCC

HCC ; HCC

Insufficient information

LCC ; LCC

HCC ; LCC