The Fairmont Hotel in San Francisco needs to replace its air conditioning sy There are two alternatives, both of which can do the job equally well: AC 1 AC 2 $40,000 $60,000 $17,000 $8,000 Machine name Purchase price Operating cost (end of each year) Useful life (years) Straight line depreciation to zero over (years) Salvage value at end of useful life 4 6 4 6 $0 $0 The relevant discount rate is 10% and the marginal tax rate is 35%. Part 1 IB Attempt 5/6 for 10 pt What is the operating cash flow for AC 1 per year? 0+ decimals Submit Part 2 - Attempt 1/6 for 10 pts. What is the equivalent annual cost for AC 1 (in absolute terms)? 19226 Try again Try again 18 P Attempt 2/6 fo Part 3 What is the operating cash flow for AC 2 per year? 0+ decimals Submit Part 4 IB | Attempt 1/6 for 10 What is the equivalent annual cost for AC 2 (in absolute terms)? 0+ decimals Submit