Question: You work for the Baylor Scott & White System EHS Department. You are asked to procure new sharps disposal containers for your clinics. You have
You work for the Baylor Scott & White System EHS Department. You are asked to procure new sharps disposal containers for your clinics. You have two primary options, Option A and Option B. To implement across all of your clinics, the initial costs are $27,800 for Option A and $31,900 for Option B. Both have estimated useful lives of 12 years with no salvage value. Both options will save you in disposal costs and lost time workday cases. The estimated savings for the options are:
| Option A | Option B | |
| Year 1 | $1,150 | $1,625 |
| Year 2 | $1,225 | $1,625 |
| Year 3 | $1,300 | $1,625 |
| Year 4 | $1,375 | $1,625 |
| Year 5 | $1,450 | $1,625 |
| Year 6 | $1,525 | $1,625 |
| Year 7 | $1,600 | $1,625 |
| Year 8 | $1,675 | $1,625 |
| Year 9 | $1,750 | $1,625 |
| Year 10 | $1,825 | $1,625 |
| Year 11 | $1,900 | $1,625 |
| Year 12 | $1,975 | $1,625 |
Assume 6% interest, what are your knowns in this situation for Option B?
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