Assume that the life of EOP is six years and that of PMS is five years. Which system should EAMO purchase? Why? (Make assumptions if necessary and explain them.)

Cost Estimates for EOP and PMS Year EOP ($) PMS ($)
0 (the current year) 1,500,000 750,000 1 100,000 300,000 2 100,000 300,000 3 100,000 300,000 4 100,000 300,000