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Problem I1.23 ou are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model
Problem I1.23 ou are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,600 and is expected to run for 7 years; Model B f $15,500, and has an expected life of 10 years. The annual maintenance costs are $770 for Model A and $640 for Model B. Assurne that the opportunity cost of capital is 11 percent alculate equivalent annual costs (EAC) of each models (Do not round the discount factor. Round intermediate calculations and final answers to 2 decimal places, e.g. 15.25.) EAC of Model A is EAC of Model B is Which one should you buy? You should buy LINK TO TEXT Question Attempts: 0 of 3 used
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