You are evaluating two offers for hospital imaging equipment

You are evaluating two offers for hospital imaging equipment. Perform an NPV analysis for each offeror. Enter the Total NPV for each offeror and identify the better offer (Offeror A or Offeror B).

The OMB discount rate is .5%.

Offeror A proposes a purchase for $65,000, with required maintenance costs in Year 2 for $2,000 and a salvage value in Year 3 of $4,000.

Offeror B proposes a lease for $22,500 per year for three years.(1 Point)

Offeror A: -$63,039.80, Offeror B: -$67,164.75, Better offer: Offeror A

Offeror A: -$67,164.75, Offeror B: -$63,039.80, Better offer: Offeror B

Offeror A: -$53,039.80, Offeror B: -$65,164.75, Better offer: Offeror B

Offeror A: -$65,039.80, Offeror B: -$59,164.75, Better offer: Offeror A