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Question - You work for the Baylor Scott & White System EHS Department. You are asked to procure new sharps disposal containers for your clinics. You have two primary options, Option A and Option B. To implement across all of your clinics, the initial costs are $26,350 for Option A and $31,900 for Option B. Both have estimated useful lives of 12 years with no salvage value. Both options will save you in disposal costs and lost time workday cases. The estimated savings for the options are:
Option A
Option B
Year 1
$3,945
$5,250
Year 2
$4,095
Year 3
$4,245
Year 4
$4,395
Year 5
$4,545
Year 6
$4,695
Year 7
$4,845
Year 8
$4,995
Year 9
$5,145
Year 10
$5,295
Year 11
$5,445
Year 12
$5,595
Required - Assume 6% interest. What is the present worth of Option B?
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