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uestion 7 of 10 ew Policies irrent Attempt in Progress You are starting a family pizza parlor and need to buy a motorcycle for delivery
uestion 7 of 10 ew Policies irrent Attempt in Progress You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model Acosts $ 9,200 and is expected to run for 7 years: Model B is more expensive, with a price of $ 14 700, and has an expected life of years. The annual maintenance costs are $ 870 for Model A and $ 720 for Model B. Assume that the opportunity cost of capital is 10 percent. Calculate 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 Ais $ EAC of Model B is $ Which one should you buy? You should buy e Textbook and Media Attempts unlimited SA Save for Later
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