The Department of Corrections (DOC) needs to replace two of its prison transport buses.

There are two companies that have a track record of making reliable vehicles, and both make a

bus that meets the needs of the department. The DOC pays an 8% interest rate on money it borrows.

The bus from Company A has a purchase price of $105,000 and a 10-year service life expectancy,

and it averages $2,000 per year in maintenance costs. The bus from Company B has a

purchase price of $110,000 and a 10-year service life expectancy, and it averages $1,500 per year

in maintenance costs. Which bus should the Department of Corrections select?