Company A plans to replace with one of their current equipment with one of the three options shown in the table.

Option	A	B	C
Initial Cost	200	350	475
Annual Operation Cost	450	275	300
Salvage Value	75	60	80
Estimated Life in Year	20	20	20

Perform AW analysis to figure out which option should company A choose. The rate of return is 8% per year compounded Monthly. Please see correct answer below how do you get this?

Time Window - Year
	A	B	C
PMT	($469.24)	($310.18)	($347.77)
		Winner