Problem 7 (15 points) A client asks you to evaluate the net present worth on 2 pieces of equipment that produce a product to determine the most cost-effective solution. Using an interest rate of 9% and a life of 14 years, determine the most cost-effective solution based on the following data: Option A Initial cost: Annual O&M cost: Option B $325,000 $35,000 per year Additional maintenance cost at year 8: $85,000 Sales from product (benefit) produced by machine: $120,000 per year Salvage Value: Initial cost: Annual O&M cost: $105,000 $460,000 $48,000 per year Additional maintenance cost at year 10: $110,000 Sales from product (benefit) produced by machine: $160,000 per year Salvage Value: $190,000