PLEASE SHOW STEP BY STEP WORK

Sharon Inc., a manufacturer of snowmobiles has detected asbestos, a hazardous material, in the insultation of its factory. A complete strip and repair job will have to be done at a considerable cost. Two bids for the job have been obtained. Doust Construction Inc. will be the work for $120,000. With a $20,000 down payment, Doust Construction will finance the balance over six years to 10 percent, requiring Sharon to make six equal annual payments. Chamberlain Inc. will do the job for $122,500 and will finance the entire amount at 6 percent, requiring Sharon to make six annual payments. Sharon's best available use of money to do the strip and repair job is 8 percent. Which contractor should Sharon's use