You are considering buying carpet for your university; Grade A carpet costs $25.25 a square yard and lasts 5 years and Grade B costs $18.25 a square yard and lasts 3 years; Grade C costs $12.10 a yard and lasts 2 years; which carpet should be chosen if the discount rate is 5%? Assume that due to a large endowment given by the state's"carpet king" the university is committed to continued carpet use.What is the EAC of Grade C carpet?
A) $ (4.44)
B) $ (4.36)
C) $ (4.22)
D) none of the above
Correct Answer:
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