Week14-EquivalentAnnualCost For this question, use the Equivalent Annual Cost Approach to analyze two projects with different lives. Shawnie's Contracting Services, Inc, needs to expand their ability for large reconstruction jobs. In doing so, the company plans to purchase a new heavy-duty tractor. The cost of capital for Shawnie's Contracting Services, Inc. is 12%. The company has two possible options: Heavy-Duty Tractor A: Cost =$128,000 Seven Year Life Annual OCF (after tax) =$12,500 Heavy-Duty Tractor B: Cost =$99,000 Five Year Life Annual OCF ( after tax )=$13,250 a. Calculate the EAC for Heavy-Duty Tractor A: b. Calculate the EAC for Heavy-Duty Tractor B: c. Which heavy-duty tractor should the company purchase and why