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Incorrect Question 1 0/10 pts A janitorial services firm is considering two brands of industrial vacuum cleaners to equip their staff. Option A will cost
Incorrect Question 1 0/10 pts A janitorial services firm is considering two brands of industrial vacuum cleaners to equip their staff. Option A will cost $1,500, require servicing of $200 per year, and it will last five years. Option B will cost $1,000, require servicing of $100 per year, and it will last three years. If the cost of capital is 8%, which is the better option, given that the firm has an ongoing requirement for vacuum cleaners? Option B, since it has a lower equivalent annual annuity. Option B, since it has a greater equivalent annual annuity. Option A, since it has a greater equivalent annual annuity. Option A, since it has a lower equivalent annual annuity
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