You have two options for purchasing new copier, COPY1 and COPY2. The two copiers have an identical ability to generate revenues but different lifespans and cost structures:

-COPY1 costs $5,000 to install (at t = 0) and $2,000 per year to operate for next 7 years. It will be sold for $1,100 at the end of year 7 (i.e., salvage value at t = 7).

-COPY2 costs $9,000 to install (at t = 0) and $1,500 per year to operate for next 8 years. It will be sold for $2,000 at the end of year 8 (i.e., salvage value at t = 8).

Suppose that the cost of capital for this project is 13%. Determine which copier you should choose and explain why.Hint: The salvage value of each copier should be a part of its terminal cash flows. Be careful about the sign of the salvage value: +.