You are the owner of a construction company and must decide the best strategy for providing crane services over the next 5 years. You currently own a 40-ton crane which has a current market value of $200,000. If you choose to keep the existing crane, you will have to immediately invest $250,000 for repairs to ensure it will last 5 years where it will have zero salvage value. If you choose to purchase a new crane, assume that you can sell and recover the full market value of the existing equipment ($200,000). The following table presents two feasible options and associated costs. Disregard the effects of taxes, depreciation and inflation. MARR = 10%.

items	Option 1: Keep Crane	Option 2: Purchase new
inital cost	$250,000	$750,000
O&M per year	$7,500	$5,000
Operating Expenses	$600/day	$300/day
Salvage Value EOY 5 yrs	$0	$250,000

Find:

a.) Number of crane operating days per year required to be indifferent (breakeven) between choosing either Option 1 or Option 2.

b.) The best option if you are predicting a need for at least 150 crane operating days per year over the next five years. Explain