Question: For the next 2 questions suppose the following data holds: You have been asked to evaluate two pollution devices. The wet scrub costs $500 to

 For the next 2 questions suppose the following data holds: You

For the next 2 questions suppose the following data holds: You have been asked to evaluate two pollution devices. The wet scrub costs $500 to set up and $100 per year to operate. It must be completely replaced every 4 years, and it has no salvage value. The dry scrub device costs $800 to set up and $75 per year to operate. It lasts for 5 years and has no salvage value. Assume the pollution control equipment is replaced as it wears out, and the cost of capital is 12% What is the EAC of the wet scrub device? O $257.74 O $264.62 O $286.04 O $296.93 O $331.21 QUESTION 75 IN Z What is the EAC of the dry scrub device? O $257.74 O $264.62 $286.04 O $296.93 O $331.21

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