Wagner Township needs to purchase a new fleet of police vehicles and is debating between two different options. Fleet A will cost $220,000 upfront and will require maintenance costs of $35,000 per year. The maintenance payments will be due in advance, with the first payment due immediately. Fleet A is estimated to have a useful life of four years. Fleet B, on the other hand, is estimated to have a useful life of six years and will cost $325,000 upfront. Maintenance costs for Fleet B will be $30,000 per year for the first three years and $35,000 per year for all subsequent years. Wagner Township uses a discount rate of 6.5%.

Use the above information to calculate the following:

[Note: Round your answers to TWO decimal places. Do not include symbols ($) or commas in your answers. Write only POSITIVE numbers - e.g. even if Excel gives you -253.42, write 253.42]

A) Present value of Fleet A's cost is: $[Blank 1]

B) Present value of Fleet B's cost is: $[Blank 2]

C) Which fleet should Wagner Township choose? [Write 1 if Fleet A or 2 if Fleet B] = [Blank 3]

D) Which of the following methods would you use to answer Part C:

1. Net Present Cost
2. Net Present Value
3. Annualized Cost

[Write the WHOLE number corresponding to correct option - e.g. 1 or 2 or 3