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Plymouth and Brockton Bus Lines (PgB) is a tegional bus transportation company that operates in Eastern Massachuselts, New Hampshire, Maino, and Rhode Island. The company

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Plymouth and Brockton Bus Lines (PgB) is a tegional bus transportation company that operates in Eastern Massachuselts, New Hampshire, Maino, and Rhode Island. The company is in the process of choosing between two bus modols for its new dedicaled hourly service between Boston Logan international Airport and Manchester-Boston Regional Airport. O model, the OR-5000, is more expenaive to purchase and maintain but will have a longer operatonal 1te than the other model, the SNS-2000. PSB's discount rate is 10.9%. The company plans t continue whth one of the two models for the foreseeable future. Based on the purchase and operational costs of each model sbown below, which model should it choose? Part A) Based on the costs of each model, which thould ta choose? (Select the best cholce below) A. PSB should choose the \$NS-2000 because the equivalent annuat annuity of its costs is semaller B. PBB should choote the SNS-2000 because the NPV of as costs is smalier. C. PSB should choone OR-5000 becaite the equivalent ann inl annulty of its costs is smaler. D. PSE should choose the 0R5000 because it lasts longer. Part B) Just as the company is about to make its decision, a new bus manutacturne mubruth a bid for its model, the EX-3000, to be conaidered for this purchase. This new moder wil have a foyear operational te. It annoal maimenance costs are orily anticoated to be $1,500 per year. The purchase price of the Exw.000 io 5250,000 por unt. What is the equivalent annuat annuly of the cont of the Ex3000 ? The equivelent annual annuly of purchasing the Ex 3000 in I per yeac (Please enter your answer as a pesilive number, rounded to the neareat dollar.) Part C) Does the addson of the eption of purthasing the EX-3000 change your decion from Part A? A. Yes, the EX-3000 io now the mom attractive option. 8. Wo. the addifion of the EXC 3000 to our choich of bus models dott not change mr deoision

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