This additional detail applies to questions 7 - 9. Upon completion of the building you lease it to a tenant who needs a boiler system. As part of the lease negotiations, you agree to cover the cost of the new boiler for the building. Your research reveals two viable options. The first option ("A") will cost $20,000 to purchase and install. It will cost $1,000 per year to operate and it will last for five years. The second option ("B") will cost $15,000 to purchase and install. It will cost $1,500 per year to operate, and will last for three years. Your discount rate is still 10%.

1. What is the EAC (equivalent annual cost) of the first option (A)? Round your answers to the nearest whole dollar.

2. What is the EAC (equivalent annual cost) of the second option (B)? Round your answers to the nearest whole dollar.