Please show your work.

Econo$-$Cool air conditioners cost $$345$ to purchase, result in electricity bills of $$159$ per year, and last for $5$ years. Luxury Air models cost $$545,$ result in electricity bills of $$118$ per year, and last for $8$ years. The discount rate is $25\%.$ Answer both parts based on quantitative analysis.

Which method in capital budgeting analysis would be appropriate for your decision on choosing the right machine to purchase?

Which model of air conditioning system is more cost$-$effective based your quantitative analysis? And why?