Question: 7) Listed below are two solutions for a service issue. Work out the present cost for each and determine which one you sould select. Use

7) Listed below are two solutions for a service issue. Work out the present cost for each and determine which one you sould select. Use a 6% interest rate. Option 1 Option 2 First Cost $15,000 $8,000 Maintenance $1,200 $900 Salvage $1,000 $4,000 Life 8 years 4 years a. b) Option 1, which has PW = $17,775 b.d) Option 2, which has PW = $18,657 c. a) Option 1, which has PW = $21,825 d. c) Option 2, which has PW = $ 14,247

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