I was having a problem
It is estimated that the annual sales of a new product will be 2,000 units the first year and an increase by 1000 units per year until 5,000 units are sold during the fourth year. Proposal A is to purchase equipment costing $12,000 with an estimated salvage value of $2,000 at the end of 4 years. Proposal B is to purchase equipment costing $28,000 with an estimated salvage value of $5,000 at the end of year 4. The variable cost per unit under proposal A is estimated to be $0.80, but it is estimated to be $0.25 under proposal B. If the interest rate is 9%, what proposal should be accepted for a 4-year production period?