Hillsdale is considering two options for comparable computer software. Option A will cost $35,000 plus annual license renewals of $1,700 for three years, which includes technical support. Option B will cost $20,000 with technical support being an add-on charge. The estimated cost of technical support is $4,100 the first year, $3,100 the second year, and $2,100 the third year. Assume the software is purchased and paid for at the beginning of year one, but that technical support is paid for at the end of each year. The discount rate is 8%. Ignore income taxes.

A. Calculate the present value of net cash flows.Use Table 2.

B.Determine which option should be chosen based on present value considerations