Office Automation Inc. must choose between two copiers, XX$40$ and RH$45.$ XX$40$ costs less than RH$45,$ but its economic life is shorter.

The costs and maintenance expenses of these two copiers are given as follows. These cash flows are expressed in real terms:

The inflation rate is $5$ percent and the nominal discount rate is $14$ percent. Assume that revenues are the same regardless of the

copier, and that whichever copier the company chooses, it will buy the model forever.

a$.$ Calculate the value of EAC for XX$40$ and RH$45$ copier? $($Input all amounts as positive values. Do not round intermediate

calculations. Round the final answers to $2$ decimal places. Omit $ sign in your response.$)$

b$.$ Which copier should the company choose? Ignore taxes and depreciation.

XX$40$

RH$45$