A 2-MVA transformer is open for procurement. Vendor A offers 96.5% efficiency at $160,000 price, and vendor B offers 97.8% efficiency at $180,000 price. Determine the present worth 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 = $0.12/kWh, and 

(4) Discount rate = 12% per year. 

Answer in terms of the power loss capitalization rate