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6. Harper Hospital needs to purchase a new eet of ambulances and is debating between two options. Option A will cost $3,750,000 upfront and will
6. Harper Hospital needs to purchase a new eet of ambulances and is debating between two options. Option A will cost $3,750,000 upfront and will require maintenance costs of $25,000 per year. Option A is estimated to have a useful life of four years. Option B, on the other hand, is estimated to have a useful life of six years and will cost $5,000,000 upfront. Maintenance costs for Option B will be $0 in year 1 and year 2, $12,000 in year 3 and year 4, and $20,000 in year 5 and year 6. The hospital uses a discount rate of 5.5%. Which option should the hospital choose
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