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[ Ch 1 0 ] A janitorial services firm is considering two brands of industrial vacuum cleaners to equip their staff: Option x will cost

[Ch 10] A janitorial services firm is considering two brands of industrial vacuum cleaners to equip their staff:
Option x will cost $$20,000, require servicing of $1,000 per year, and it will last 5 years.
Option Y will cost $21,000, require servicing of $$1,400 per year, and it will last 7 years.
If the cost of capital is 7.20, how much does the firm save per year (in today's dollars) by purchasing the vacuum that is the better value compared to the vacuum that is the worse value?
(to nearest $0.01)
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