Mike Mulligan, CEO of Mulligan Excavation Inc, needs to replace Mary Anne, his old steam-driven shovel. Mike is looking at three used Caterpillar hydraulic excavators. Each alternative is a different model and each is a different age, and so each has a different expected working life and productive capability. Mike has produced estimates (in the table below) of the purchase price of each excavator and the associated after-tax cash flows that he expects to earn. Mikes cost of capital is 10%. Using the equivalent annual annuity approach, answer the following questions to find which excavator Mike should purchase.

Cash flows for Hydraulic Excavators By Model
Time	385 CL	365 CL	345 DL
0	-133	-105	-114
1	48	90	48
2	62	38	38
3	38		62
4	29

Question 1 What is the EAA for 385CL? (Round your answer to two decimal places.)

Question 2 What is the EAA for the 365CL? (Round your answer to two decimal places.)

Question 3 What is the EAA for 345DL? (Round your answer to two decimal places.)

Question 4 Which excavator should Mike select?