The Apolo Hospital purchased a new equipment for $120,000. The estimated salvage value is $15,000. The equipment has a useful life of five years and the hospital expects to use it 10,400 hours. It was used 1,900 hours in year 1; 2,200 hours in year 2; 2,700 hours in year 3; 1,800 hours in year4; 1,800 hours in year 5.

Question :If you were the procurement manager of the hospital, which method would you prefer and why?