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 $10,000 and is expected to run for 7 years; Model B is more expensive, with a price of $13,500, and has an expected life of 9 years. The annual maintenance costs are $880 for Model A and $640 for Model B. Assume that the opportunity cost of capital is 12 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 A is $ EAC of Model B is $ Which one should you buy? You should buy