A tractor costs $12,500 and will be used for five years when it is estimated to have salvage value of $4,000. Maintenance costs are estimated to be $100 the first year and increase by $100 each year thereafter. Income from the tractor is expected to be $3,000 the first year and increase by 4% each year. If MARR=12% what is the AW of the tractor?

$381

$106

$316

-$116