Ryan has received cost and salvage value estimates for two competing fire sprinkler systems to be installed in his office building. System A has a first cost of $100,000, annual M&O costs of $10,000, and $20,000 salvage value after 5 years. System B has a first cost of $175,000, M&O costs of $8,000, and a $40,000 salvage value after 10 years.