Three options are presented to you for an HVAC system for a new home as listed in the table below. Each system proposed has a 20-year expected service life, an initial 'capital' cost, annual savings, and a decommissioning cost (definition: to remove and safely dispose of all equipment and refrigerant). Use a discount rate of 6%/year for comparison.

Option	Capital Cost	Ongoing Savings	Decommissioning
1	$15,000	$0/year	$3,000
2	$40,000	$6,000/year	0
3	$50,000	$11,000/year	$25,000

Which statement is true regarding the calculated values?

Question 1 options:

	Option 1 is the best option with a net present cost of $15,935
	Option 3 is the best option with a life cycle benefit of $68,375
	Option 2 is the least expensive with a lifecycle cost of $28,200
	Option 3 is the worst option with a life cycle cost of $68,375