The factory manager is considering the following two quotes from two vendors for purchace and maintanance of an equipment. Vendor X's estimates are all in actual dollars, while Vendor Y's estimates are all in year-zero dollars. Vendor X $9,400 $3,900 10 $3,760 Vendor Y $11,300 $3,000 10 $4,520 Initial cost Annual cost Service life (yrs) Salvage value The manager uses an annual real interest rate of 10% for economic analysis. If inflation rate is expected to average 1.82% per year over the next five years, which vendor should the manager select that will minimize the cost of ownwership? (a) Calculate PW for each alternative (use negative sign for costs) The PW of Vendor X's estimates is (Round to the nearest whole number.) The PW of Vendor Y's estimates is S (Round to the nearest whole number.) (b) The most economical alternative is O A. Vendor X OB, Vendor Y