You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,100 and is expected to run for 6 years; Model B is more expensive, with a price of $14,000, and has an expected life of 9 years. The annual maintenance costs are $790 for Model A and $610 for Model B. Assume that the opportunity cost of capital is 12 percent.

Calculate equivalent annual costs (EAC) of each models.