$($A$)$ Purchase a new microcomputer system for $$15,000.$ The system is expected to last $6$ yr with a salvage value of $$1,000.$

$($B$)$ Lease a new microcomputer system for $$3,000$ per year, payable at the beginning of each year. The system should last $6$ years.

$($C$)$ Purchase a used microcomputer system for $$8,200.$ It is expected to last $3$ yr with no salvage value. Assume that at the end of $3$ years they can purchase another system for $$8,200$ that will last another $3$ years $($common$-$multiple$-$of$-$lives approach$).$

Q$1(20)$: If an annual rate of $8\%$ is used, which alternative should be selected using a discounted present worth analysis?