EUAW = EUAB - EUAC
EUABoption A = $ 16,000 + $ 4000 ( A/F , 10% , 5 years)
EUABoption A = $ 16,000 + $ 4000 * 0.163797
EUABoption A = $ 16,655.19
EUACoption A = $ 60,000 ( A/P , 10% , 5 years) + $ 7500
EUACoption A = $ 60,000 * 0.263797 + $ 7500
EUACoption A = $ 23,327.82
EUAW = $ 16,655.19 - $ 23,327.82
EUAW = - $ 6,672.63
________________________________________________________________________________
EUABoption B = $ 14,000 + $ 3700 ( A/F , 10% , 5 years)
EUABoption B = $ 14,000 + $ 3700 * 0.163797
EUABoption B = $ 14,606.05
EUACoption B = $ 37,500 ( A/P , 10% , 5 years) + $ 8000
EUACoption B = $ 37,500 * 0.263797 + $ 8000
EUACoption B = $ 17,892.39
EUAW = $ 14,606.05 - $ 17,892.39
EUACoption B = - $ 3,286.34
__________________________________________
Thus option B is the best option because its EUAW is greater than that of option A.
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