Quebec Hydro, a Canadian electric utility company, needs a new turbine. They have had vast experience with the two models they are considering, with records indicating service life, maintenance costs, and salvage life. On this historical basis, they developed cash flow estimates as given below.

	Starwood	Phillips
First Cost	$15,000,000	$20,000,000
Service Life	3 years	5 years
Salvage Value	$2,000,000	$3,000,000
Maintenance Cost, First Year	$2,500,000	$3,500,000
Rate of maintenance Increase	$1,000,000 each year over the previous year	5% more each year over the previous year

If your MARR = 8% per year, which model should you select? You may use any decision criterion to select the preferred model.