You and your partner have become very interested in cross-country motorcycle racing andwish to purchase entry-level equipment. You have identified two alternative sets ofequipment and gear. Package K has a first cost of $120,000, an operating cost of $9,500perquarter, and a salvage value of $50,000 after its 2-year life. Package L has a first cost of$210,000 with a lower operating cost of $2,900per quarterand an estimated $17,000salvage value after its 4-year life. Which package offers the lower present worth analysis atan interest rate of 20% per year, compounded quarterly?

The present worth of package K is $and that of package L is $.