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Big Maple Corp. wants to buy a new, more efficient sawmill. After their market research they have found three possible options. Sawmill A would cost

Big Maple Corp. wants to buy a new, more efficient sawmill. After their market research they have found three possible options. Sawmill A would cost $130,000 today, enjoy annual savings of $54,000 and last for 6 years. Sawmill B would cost $320,000, enjoy annual savings of $78,000 and last for 10 years. Sawmill C would cost $382,000, enjoy annual savings of $76,000 and last for 14 years. Assuming a discount rate of 11.7%, which sawmill should Big Maple purchase?

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