Puppers Revolutionary Attack Helicopters is a small firm that runs a single helicopter tour each day over Sydney's puppy parks. The company is choosing between two helicopter models to conduct these tours in: Big Boi and Smol Boi. One of the two helicopter alternatives (Big Bol) is more expensive to purchase and maintain, but lasts much longer than the other alternative (Smol Boi). The discount rate that is appropriate for all of the tour company's cash flows is 10.9% per year. The company will always need to have an active helicopter to conduct its tours, such that it would repurchase a new replacement helicopter of the same model at the end of its life. And this pattern would continue for the foreseeable future. That is, these helicopter purchasing projects are repeatable and of different life spans. Neither model affects the customer experience in a meaningful way and is expected to have no effect on annual revenue. You have the below table of the net annual cash flows associated with purchasing and running each helicopter model. Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year6 Year 7 Big Boi $206,900 -$3,800 -$3,800 $3,800 $3,800 $3,800 $3,800 $3,800 Smol Boi $100,900 $1,700 $1,700 $1,700 $1,700 Based on the above information, what is the annual cost of each helicopter model expressed as an equivalent annual annuity (EAA)? And so which helicopter should Puppers choose? a) The annual cost of Big Boi model as an equivalent annual annuity (EAA) is $ (Round to the nearest dollar) (As this question asks for the "cost", the negative sign of an annual cash outflow is already implied) The annual cost of Smol Boi model as an equivalent annual annuity (EAA) is $L (Round to the nearest dollar) (As this question asks for the "cost", the negative sign of an annual cash outflow is already implied) b) Based on the above costs of each model, which should it choose? (Select the best choice below) O(No answer given) The firm should choose Big Boi because it lasts longer. The firm should choose Big Boi because the equivalent annual annuity of its costs is smaller. The firm should REJECT BOTH bus alternatives as the NPVs of their cash flows are both negative The firm should choose Smol Boi because the NPV of its costs is smaller. OThe firm should choose Smol Boi because the equivalent annual annuity of its costs is smaller