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Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the two shops are shown in the following table. Besides

Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the two shops are shown in the following table. Besides installation, shop Y includes a full replacement warranty for 4 years in the quote. Since money does not appear to be a problem for your friend, and he asked you about the economics of the two quotes, which should he choose based on annual worth values and an interest rate of 12% per year?
Shop X Y
Installed cost, $ 2,6003,100
Total AOC, $/year 1,200900
Salvage value, $ 300900
Life, years 24
The annual worth value of shop X is $
, and the annual worth value of shop Y is $
.
The shop that your friend has to select on the basis of the annual worth analysis is

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