Find the Annual equivalent cost for the the following two alternatives and show all work.
A1: Cost= $100,000, salvage value after 5 years = $10,000, operating cost = $22,000/year.
A2: Cost= $140,000, salvage value after 5 years = $12,000, operating cost = $10,000/year. Interest rate is equal to 10% and both alternatives are expected to last for 5 years.