. A 50 horsepower motor is required to power a large capacity blower. Two motors A and B, mutually exclusive, have been proposed. Their cost data are given in Table 3. The MARR is 5% per year. Determine which alternative should be selected if the analysis period is 15 years, the repeatability assumption does not apply and the machines can be leased for $12,000 per year after the useful life of either machine is over.

Table 3

	Motor A	Motor B
Capital investment	$9,000	$8,000
Annual expenses	$5,000	$6,000
Useful life	10 years	15 years
Market value at the end of useful life	$0	$1,000
Annual leasing cost after useful life	$12,000	$12,000