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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $ 1 9 5 for the phone and then

You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $195 for the phone and then monthly charges of $62 for 24 months. Carrier B wants you to pay $90 for the
phone and monthly charges of $68 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.4% APR, compounded monthly. Based on
cost alone, which carrier should you choose?
The EAA for plan A is?____ The EAA for plan B is ?_______ Based on the cost alone, you will choose carrier A
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