Company ABC must choose between two copiers, Copier A or Copier B. Copier A initially costs $2,600 and will last for 5 years. This copier will require maintenance cost of $290 per year. Copier B initially costs $3,100 and will last 7 years. The maintenance cost for Copier B will be $265 per year. All cash flows occur at the end of the year, except for the initial costs (initial costs occur at time 0). Assume the discount rate is 6.73% and no depreciation is considered. Which copier is cheaper on an annualized basis?

A.

Copier A

B.

Not enough information to determine.

C.

Copier B

D.

They are equally costly.