Hydro One is evaluating buying two different transforms. Transformer #1: costs $370,000 has a 3 year life, has pre-tax operating cost of $80,000 per year. Transformer #2: costs $475,000 has a 5 year life, has pre-tax operating cost of $30,000 per year. Both transformers are Class 8 (CCA rate of 20% per year) and both have a savage value of $40,000. The firms tax rate is 35% and discount rate is 10% What is the PVCCATS for Transformer #2?

Select one: a. $154,898.98 b. $110,840.38 c. $90,000 d. $100,000 e. None of these.