Spencer would like to buy a car. He narrowed down his choice into two cars. The first car, RX costs $23,000 and the annual insurance, repair, maintenance, tax, and fuel cost is $3,800 and could be sold for $8,000 at the end of four year. On the other hand, the second car, BZ costs $28,000, the annual costs for this car is $3200 per year and it can be sold for $10 000 at the end of the fifth year. What is the total equivalent annual cost (EAC) for both cars and if you dont mind driving either of them, which one is more economical? The cost of capital for both choices is 6 percent.

Question 11 options:

	RX=8618.87 and BZ=8073.135, BZ is better
	RX=8608.87 and BZ=8773.135, RX is better
	RX=8608.87 and BZ=8073.135, BZ is better
	RX=8608.87 and BZ=8173.135, BZ is better