USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING TWO (2) QUESTIONS

GSU Motor Works needs to select an assembly line for producing their new SUV. They have two options:

Option XYZ is a highly automated assembly line that has a large up-front cost but low maintenance cost over the years. This option will cost $114 million today with a yearly operating cost of $38 million. The assembly line will last for 6 years and be sold for $48 million in 6 years.

Option GHI is a cheaper alternative with less technology, a longer life, but higher operating costs. This option will cost $168 million today with an annual operating cost of $31 million. This assembly line will last for 10 years and be sold for $23 million in 10 years.

The firms cost of capital is 16%. Assume a tax rate of zero percent.

48. The equivalent annual cost (EAC) for Option XYZ is $_______ million.

49. The equivalent annual cost (EAC) for Option GHI is $_______ million.