You are evaluating two machinery equipment for your mining business. The Equipment I costs $600,000, has a three-year life, and has operating costs of $75,000 per year. The Equipment II costs $750,000, has a five-year life, and has operating costs of $90,000 per year. For both equipment, use straight-line depreciation to zero over the projects life and assume a salvage value of zero. Your tax rate is zero and your discount rate is 10 percent. Which equipment do you prefer? Why?