The manager of engineering at the 900 megawatt Hamilton Nucleur Power plant has three options to supply personal safety equipment to employees. Two are vendors who sell the items, and a third will rent the equipment for #50,000 per year, but for no more than 3 years per contract. These items have relatively short lives due to constant use. The MARR is 10% per year.

Vendor R Vendor T

Initial Costs,$ -75000 -125000

Annual upkeep costs,$/year -27000 -1200

Annual rent cost, $ per year 0 0

Salvage Value,$ 0 30000

Estimated life,years 3 5

a) select from the two sales vendors using the lCM and PW analysis.