Question $3.$

Devon wants to install a new air conditioning system in his manufacturing plant. He has two offers $-$ the HCC $($high capital costs$)$ and LCC $($low capital cost$).$ HCC has a high capital cost but relatively low operating cost, while the LCC has a low capital cost but high operating conts because its uses more electricity. The cash flows of the competing systems are shown as follows:

Year

lCE

HCE

$0$

$1$

$2$

$3$

$4.$

$5.$

$\backslash$table$[[$$$-400,000,$$$,500,000$