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Ottawa Hydro must replace its power pole transformers and has received the following per unit quotes from three transformers manufactures. Which manufacturer should be awarded

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Ottawa Hydro must replace its power pole transformers and has received the following per unit quotes from three transformers manufactures. Which manufacturer should be awarded the contract? Note: Ottawa Hydro is a municipal crown corporation and does not pay income taxes SIEMENS: GE: Cost per unit: $12,500 Operating cost per unit: $3,500 per year Expected life per unit: 8 years Cost per unit: $11,500 Operating cost per unit: $3,000 per year Expected life per unit: 7 years MITSUBISHI: Cost per unit: $10,500 Operating cost per unit: $3,200 per year Expected life per unit: 6 years None of these answers SIEMENS as its quote has the highest EAC of $5,593 per unit. MITSUBHIi as it is lest expensive. SIEMENS as its units have the longest useful life. GE as its quote has the lowest EAC of $5,134 per unit

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