A new software packages available for CAD design a single user license will cost 7000 per year. A multi user license has a one time cost of 22,000 incurred now and is good for four years. The construction company is trying to decide between two alternatives by single user license, or buy a multi user license. See what interest rate of 10% per year and a four year planning period.

determine the annual worth of a single user license.

A.$-7,000

B.$-3,500

C.$-5,000

D.$-28,000

determine the annual worth of the multi user license.

A.$-5,940

B.$-7,940

C.$-6,940

D.$-6,440