First Cost, $ Annual M&O cost, $ per year Salvage Value, $ (10% residual value) Life, Years Vendor A 14,000 3,500 1,500 Vendor B 18,000 3,100 1,800 6 a. Which vendor should be selected using PW analysis, if MARR is 15%? b. If a 5-year study period is adopted and the residual values are expected to be 15% and 40% of the machine's value, for vendors A and B respectively. Which Vendor should be selected? A 9-year study period is adopted. For Vendor A, the company is considering leasing a comparable equipment with an annual lease for the remaining years of the required study period. What annual lease would make the company indifferent between the two vendors