Shinhwa Company plans to purchase a piece of new equipment to be used in their studio. Two manufacturers offered the estimates below.

A B First cost $ 400,000 $ 300,000

Salvage value $ 18,000 $ 20,000

Maintenance Cost per year $ 63,000 $ 65,000

Operation Cost per year $ 60,000 $ 75,000

Taxes and Insurance 3% 3%

Life, years 15 12 Using PWC method and complete solution:

1. PWC_A is:

a) $ 1,398,065.62 b) $ 1,422,511.68 c) $ 1,864,087.49 d) $ 2,236,904.99

2. PWC_B is:

a) $ 2,297,554.09 b) $ 1,435,971.30 c) $ 1,308,867.47 d) $ 1,914,628.41