7. Consider a palletizer at a bottling plant that has a fi rst cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8 percent. What is the present equivalent cost of the investment if the planning horizon is 30 years?

a. $335,000

c. $360,000

b. $344,500

d. $395,500