Question: n Project A Project B 0 -$7,000 -$5,000 1 -$2,500 -$2,000 2 -$2,000 -$2,000 3 -$1,500 -$2,000 4 -$1,500 -$2,000 5 -$1,500 -$2,000 6 -$1,500

n Project A Project B
0 -$7,000 -$5,000
1 -$2,500 -$2,000
2 -$2,000 -$2,000
3 -$1,500 -$2,000
4 -$1,500 -$2,000
5 -$1,500 -$2,000
6 -$1,500 -$2,000
7 - -$2,000
8 - -

Suppose projects A and B are mutually exclusive. The required service period is 8 years and comparable equipment will be leased for $3,000 per year payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Use PW(15%) criterion and show your equation with numbers plugged into factors and your numerical result for each option.

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