Office Automation, Inc., must choose between two copiers, the XX40 or the RH45. The XX40 costs $ 1,500 and will last for 3 years. The XX40 will require an after-tax cost of $190 per year after all relevant expenses. The RH45 costs $1,900 and will last 4 years. The after-tax cost for the RH45 will be $165 per year. All operating cash flows occur at the end of each year. The appropriate discount rate is 4.76%.

1.) What is the NPV of XX40

2.) What is the EAC of the XX40

3.) What is the NPV of RH45

4.) What is the EAC of the RH45

5.)Based on the information you have, the company should pick (RH45 or XX40), because (has higher equivalent annual cost, lower equivalent annual cost, lower NPV or Higher NPV)