You are evaluating a set of alternatives for a design CAD software license that your company aims to purchase; each has the characteristics shown in the table below. The annual compound interest rate is 3.5%.

Option AOption BInitial cost ($)60002000Annual operating cost ($)500200Salvage value ($)700400Lifetime (years)63

Hint: Use least common multiple of two lifetimes for calculation.

Using a present worth analysis on an appropriate analysis period, determine:

Question 1

The present worth cost for Option A

(Round your answer to the nearest integer.)

Question 2

The present worth cost for Option B

(Round your answer to the nearest integer.)