A farmer is considering the purchase of a sprinkler system. He
can choose to buy system A or system B. Sprinkler A and B provide
the same service so revenues can be ignored. The sprinkler system A
costs $37,000, has a before-tax net return of -$5,900, has a life
of 7 years, and a terminal value of $12,600. Sprinkler system B
costs $24,500, has a before-tax net return of -$7,000, has a life
of 6 years, and a terminal value...