1. Two refrigerators are available for purchase. One costs more to buy but less to operate as shown below. Both are expected to last 10 years.

	Refrigerator A	Refrigerator B
Purchase Price	$840	$700
Annual Operating
Cost (in each year):	$100	$120

Which is the cheaper source of refrigeration over a ten-year period? Does the prevailing interest rate affect your answer? (Hint: calculate the answer using 3% and again using 12%.)