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Robot A costs $10,000 and requires $1,000 per year in maintenance. It will last for 3 years before becoming obsolete and you will need to
Robot A costs $10,000 and requires $1,000 per year in maintenance. It will last for 3 years before becoming obsolete and you will need to purchase another Robot A. Robot B costs $14,000 and requires $700 per year in maintenance. It will last 4 years before another Robot B will need to be purchased. Which robot has the lower equivalent annual cost if your r is 10% and what is the EAC of that robot?
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Robot B: -3,569
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Robot B: -4,200
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Robot A: -3,763
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Robot A: -4,333
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Robot A: -5,021
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Robot B: -5,117
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