UC Baseball Ltd. is considering purchasing one of the two following lawn mower machines. The model...

 

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UC Baseball Ltd. is considering purchasing one of the two following lawn mower machines. The model F150 costs $300 today, has annual operating costs of $100, and it lasts 5 years. On the other hand, the other model RAM1500 costs $100 today, has annual operating costs of $200, and lats for 3 years. Assume both machines have no salvage value at the end of its life, and discount rate is 10%. Compute Equivalent Annual Cost (EAC) for both lawn mowers. F150= $179.14; RAM1500 = $190.21 b. F150 = $95.45; RAM1500 = $95.31 Oc. F150 = $141.75; RAM1500 = $125.34 O d. F150 = $127.92; RAM1500 = $135.66 F150 = $195.32; RAM1500 = $217.35 e. UC Baseball Ltd. is considering purchasing one of the two following lawn mower machines. The model F150 costs $300 today, has annual operating costs of $100, and it lasts 5 years. On the other hand, the other model RAM1500 costs $100 today, has annual operating costs of $200, and lats for 3 years. Assume both machines have no salvage value at the end of its life, and discount rate is 10%. Compute Equivalent Annual Cost (EAC) for both lawn mowers. F150= $179.14; RAM1500 = $190.21 b. F150 = $95.45; RAM1500 = $95.31 Oc. F150 = $141.75; RAM1500 = $125.34 O d. F150 = $127.92; RAM1500 = $135.66 F150 = $195.32; RAM1500 = $217.35 e.

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