Discussion
For that comparison, B's equivalent annual cost is about
Answer: B
Correct answer: 9196
\[ EUAC_B = 35{,}000 \times 0.16275 + 3{,}500 = 5{,}696 + 3{,}500 = 9{,}196. \] B is cheaper by 59 a year, which on figures of this size is well inside the accuracy of the estimates. The honest conclusion is that the two are effectively equal and that other considerations should decide.
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