You work for Apache Energy Solutions in their CenTex EHS Department. You have been tasked in the analysis of the present worth of two new injury-tracking software packages.

Package A has an initial cost of $12,400. It has an annual maintenance cost of $1,200, a projected cost benefit of $4100 annually, and the company will buy it back from you in 8 years for $2,200. Package B has an initial cost of $16,800, an annual maintenance cost of $800, a projected cost benefit of $5800 annually, and a salvage value of $1800 in 4 years. Assume 4% interest.

Given the NPWs for Option A is $5,601 and Option B is $6,783, which would you choose?

Group of answer choices

A. Choose Option B because it has the largest annual benefit

B. Choose neither because NPW isn't a valid analysis method

c. Choose Option B because it has the largest NPW

d. Choose Option A because it has the lowest NPW