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A mechanical engineer analyzes two types of pressure sensors (the X-type sensor and the Y-type sensor) for a low pressure steam line. Which one should

A mechanical engineer analyzes two types of pressure sensors (the X-type sensor and the Y-type sensor) for a low pressure steam line. Which one should be selected, with an interest rate of 12% per year? The costs are shown below.

TYPE X TYPE Y
INITIAL COST $25,260 $19,000
ANNUAL MAINTENANCE COST $11,000 $9,000
RESCUE VALUE $5,000 $6,000
LIFE IN YEARS 4 7

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