Year	EOP	PMS
o	1,500,000	750,000
1	100,000	300,000
2	100,000	300,000
3	100,000	300,000
4	100,000	300,000

1. Assuming a 5 percent annual discount rate, what are the PVCs for EOP and PMS? Which system should EAMO purchsed based on your PVC analysis?

2. Assuming a 10 percent annual discount rate, which system should EAMO purchase?

3. Assume that the life of EOP is six years and that of PMS is five years? Which system should EAMO purchase? Why