Ottawa Hydro must replace its power pole transformers and has received the following per unit quotes from three transformers manufactures. Which manufacturer should be awarded the contract? Note: Ottawa Hydro is a municipal crown corporation and does not pay income taxes

SIEMENS: 9 Cost per unit: $12,500 Operating cost per unit: $3,500 per year Expected life per unit: 8 years

GE: Cost per unit: $11,500 Operating cost per unit: $3,000 per year Expected life per unit: 7 years

MITSUBISHI: Cost per unit: $10,500 Operating cost per unit: $3,200 per year Expected life per unit: 6 years

a)None of these answers

b) GE as its quote has the lowest EAC of $5,134 per unit.

c) MITSUBHII as it is lest expensive.

d) SIEMENS as its units have the longest useful life.

e) SIEMENS as its quote has the highest EAC of $5,593 per unit.