The OTR bus company must replace or rebuild their fleet of 120 buses because they have reached their useful life. The three options available are to purchase a new standard bus, to purchase a superbus, which is more costly but lasts longer, and to rebuild available buses. The costs of these options are given below: (O&M is operating and maintenance). Life Annual Option Overhaul Capital Overlau Cost, years O&M cost cost year 6, 12, 18 325,000 22 52,300 28,000 Superbus 225,000 10 30,000 45,000 Standard Rebuild 42,000 95,000 none none Which bus is preferred at 7% discount rate? (Hint: Annualize costs and sum up)