1. You can continue to use your less efficient machine with a maintenance cost of $8,280 annually for the next five years (with zero initial cost). Alternatively, you can purchase a more efficient machine for $12,000 today, plus $5,000 annual maintenance that last for the next 10 years. The cost of capital is 15%, then you should: (assume both machines are repeatable)

A. Keep the old machine and save $200 in equivalent annual costs.

B. Keep the old machine and save $388 in equivalent annual costs.

C. Keep the old machine and save $1,195 in equivalent annual costs.

D. Buy the new machine and save $109 in equivalent annual costs.

E. Buy the new machine and save$389 in equivalent annual cost

F. None of the above (state your answer)