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a a m An Company C is seeking for help to decide this option to choose to upgrade their current bottleneck equipment or they should

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a a m An Company C is seeking for help to decide this option to choose to upgrade their current bottleneck equipment or they should stay with the current equipment (without improvement) There are two vendors and one rental option. The cost details are shown in the table below. All the options will have four-year life time. \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{c|}{ B } & \multicolumn{1}{c|}{ C } \\ \hline 1 & Problem 5-10 points & \\ \hline 2 & \multicolumn{3}{|c|}{ Company D needs to decide which option t } \\ \hline 3 & Option & A & B \\ \hline 4 & Initial Cost & 225,000,000 & 350,000,000 \\ \hline & AnnualOperation & 30,000,000 & 6,000,000 \\ 55 & Cost \\ \hline 6 & Maintenancecostperevery20years & 50,000,000 & 30,000,000 \\ \hline 7 & EstimatedLifeinYear & Infinite & Infinite \\ \hline \end{tabular} 8 Which option would you recommend? MARR =7%

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