The following alternative pieces of equipment are being considered for solids from a liquid slurry. There is no salvage value once the service life is reached. If internal hurdle rate $=10\%$ p$.$a$.,$ calculate the capitalized costs for equipment A and $B.$ Which equipment do you recommend?

Capitalized cost for perpetual use of equipment:

$C_c=\frac{C_p(1+i{)}^n-S}{(1+i{)}^n-1}+\frac{C_A}{i}$

where

$C_c$ : capitalized cost

$C_p$ : fixed capital investment

$C_A$ : annual operating cost

$i$ : annual interest rate

$n$ : service life in years

$S$ : salvage value

What is the Capitalized Cost of equipment A and equipment B$?$