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 $8.900 and is expected to run for 6 years: Model B is more expensive, with a price of $15,300, and has an expected life of 10 years. The annual maintenance costs are $760 for Model A and $710 for Model B. Assume that the opportunity cost of capital is 10 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.es. 15.25.) EAC of Model Ais 5 EAC Of Model Bis $ Which one should you buy? You should buy Carla Vista Corporation just purchased computing equipment for $17.000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $13,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, eg. 15.25.) EXHIBIT 11 MACRS Depreciation Schedules by Allowable Recovery Period The MACRS schedule is the tre depreciation rates that firms use for wetplaced into service after the Tax Return Act of 1986 went to effect. The table indicates the percentage of the cost of the set that can be deprecated in each year during the period that it is being used. Year I the year in which the place Year 5.Year 7-Year 10-Year 15-Year 20-Year 10.00 5.00 3.733 18.00 17.29 14.30 11.52 1152 LS 340 32.00 19.30 113 14 8.35 7.70 600 6.68 6.18 5.71 RO RO 7:37 656 10 489 493 1.16 136 4.46 446 5.00 591 30 591 500 591 50 501 33 4.16 15 16 136 1.16 10 4.46 JODO 10000 5 6 11.52 5.76 8.93 8.92 8.93 4.46 7 8 9.22 7.37 6,55 6,56 6.55 3.28 10 11 12 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 3.00 5.91 2.95 5.71 5.29 4,89 4.52 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 4.46 14 15 16 19 21 MOD 100.00 10000 224 100.00 After tax proceeds