Marthas Bakery wants to expand their current operations and is looking to buy new oven. They are currently evaluating two oven models: Empava single electric wall and Frigidaire freestanding. Empava single electric wall oven cost $315 to purchase, result in electricity bills of $153 per year, and last for 5 years. Frigidaire freestanding oven cost $515, result in electricity bills of $106 per year, and last for 8 years. The discount rate is 23%.

What is the equivalent annual cost of the Empava single electric wall model?

Which model is more cost-effective?

A. Empava single electric wall

B. Frigidaire freestanding