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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

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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: 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% )? (Negotive answers should be indicoted by a minus sign. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) Which is the preferred method? Method 1 Method 2

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