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A janitorial services firm is considering two brands of industrial vacuum cleaners to equlp their statl. Option A will cost $1,500, require A janicicing of
A janitorial services firm is considering two brands of industrial vacuum cleaners to equlp their statl. Option A will cost \$1,500, require A janicicing of $200 per year, and it will last five years. Option B will cost $1,000, require servicing of $100 per year, and is will last three years If the cost of capital is 8%, which is the better option, given that the firm has an ongoing requirement for vacuum claanere? A. Option A, since it has a lower equivalent annual cost. E. Option A, since it has a greater equivalent annual cost. C. Option B, since it has a greater equivalent annual cost. 1. Option B, since it has a lower equivalent annual cost
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