Lobo is a leading manufacturer of positronic brains, a key component in robots. The company is considering two alternative production methods. The costs and lives associated with each are: Year Method 1 Method 2 0 $ 6,700 $ 9,900 1 400 620 2 400 620 3 400 620 4 620 Suppose all the costs are before taxes and the tax rate is 39%. Both types of equipment would be depreciated at a CCA rate of 25% (Class 9), and would have no value after the project. What are the EACs in this case (r = 13%)? (Negative answers should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) EAC Method 1 $ 5068.78 5068.78 Incorrect Method 2 $ 6665.65 6665.65 Incorrect Which is the preferred method? Method 1 Method 2