It is time for you to consider getting a new car. You try to evaluate the idea of getting an electric car. Assume that your initial cost for a regular car would be $30,000, and the annual fuel and maintenance cost are estimated to be $2,400. For a similar electric car, the initial cost is $40,000 and the annual electricity and maintenance cost are $120. You expect to run the regular car for 15 years and the electric car for 12 years. Without considering the salvage value, which car should you buy if you want to have the minimum annual average cost, assuming a 6% cost? What is the equivalent annual cost (EAC) for each car