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You need to purchase equipment which requires maintenance and which must last for 10 years. You have two choices: a. You can buy the equipment

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You need to purchase equipment which requires maintenance and which must last for 10 years. You have two choices: a. You can buy the equipment from Supplier A who charges $8000 more in initial cost for the equipment than Supplier B but includes maintenance at no additional charge over the life of the equipment. b. You can buy the equipment from Supplier B and purchase a separate annual maintenance contract from Supplier B. The annual charge is $1,000 as of now, but the contract includes an escalation clause that increases the amount by 2% each year. Payment is due at the end of each year, with the first being due one year from now. Your company's discount rate is 12%. Which supplier do you choose? Support your conclusion with appropriate calculations

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