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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

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
1400620
2400620
3400620
4620
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%)?
a.-$2,311.65 & -$2,803.42 respectively, choose method 1
b.-$5,458.16 & -$8,338.7 repectively, choose method 2
c.-$2,467.65 & -$3,045.22 respectively, choose method 1
d.-$3,237.6 & -3,948.32 respectively, choose method 1
e.-$3,081.6 & -$3,706.52 respectively, choose method 1

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