Question:

The following table is used to make a replacement decision regarding a piece of engineering equipment.

Year	Salvage value	Maintenance costs	EAC Capital costs	EAC maintenance costs	Total
1	$32,000	$4,000	$38,416	$4,000	$42,416
2	15,031	8,000	30,889	5,923	36,812
3	7,065	16,000	24,226	9,027	33,253
4	3,320	32,000	19,813	14,125	33,938
5	1,561	64,000	16,746	22,627	39,373

If the minimum acceptable rate of return is 8.0%, what is the purchase price of this equipment?

Question options:

a. $70,416

b. $65,200

c. $6,416

d. $69,045

Please proper explain and do not copy from Chegg. Otherwise I have to report the answer.