A 1000-kVA transformer is open for procurement. Vendor A offers 97% efficiency at $90,000 price, and vendor B offers 98% efficiency at $100,000 price.

Determine the profitability of buying the high-efficiency transformer. Assume that: 

(1) Quoted efficiency is at rated load at 90% pf lagging, 

(2) Core loss = 1/3 total loss at rated load, 

(3) Energy cost = $0.15/kWh, and 

(4) Interest (discount) rate = 9% per year. 

Frame your answer in terms of the power loss capitalization rate of saving 1-kW power loss in the magnetic core, which remains connected all year round for 30 years.