Problem $12\mathrm{.}05($Equivalent Annual Annuity$)$

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Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state$-$of$-$the$-$art equipment $($System A$)$ for an after$-$tax cost of $$25,000,$ which will generate aftertax cash flows of $$8,000$ at the end of each of the next $6$ years. Alternatively, the company can purchase equipment with an after$-$tax cost of $$13,000$ that can be used for $3$ years and will generate after$-$tax cash flows of $$8,000$ at the end of each year $($System B$).$ If the company's WACC is $10\%$ and both "projects" can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate calculations. Round your answer to the nearest cent.

Choose Project $$ whose EAA $=$$ $$ Continue without saving