What is the EAC of this equipment? BGA Inc. is evaluating different golf practice equipment. The FRS equipment costs $43,000, has a 6-year life, and costs $13,000 per year to operate. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $8,000 at the end of the project's life. The relevant tax rate is 30 %. The relevant discount rate is 10%. All cash flows occur at the end of the year.