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You need the service of an asset for an indefinite period of time. You have two choices. Asset 1 has a 5 - year service

You need the service of an asset for an indefinite period of time. You have two choices. Asset 1 has a 5-year service life. It has a first cost of $1200 and provides annual savings of $600. Asset 2 has a 7-year service life. It has a first cost of $1600 and provides annual savings of $650. Using the least common multiple approach, compare the present value of the service lives of the two assets over the LCM lifetime. MARR =10%. Find the solution within $10 of which of the following.
Question 2 options:
385
405
425
445
None of the above

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