Springfield Ironworks (SI) recently had their furnace break downand they need to

Springfield Ironworks (SI) recently had their furnace break downand they need to quickly purchase a new one to minimize thedisruption in their production. They can either choose a highquality furnace (H) that costs $110000 with $4000 of annualmaintenance costs for the 7-year life of the furnace or a lowquality furnace (L) that costs $60000 with $7500 in annualmaintenance costs for the 4-year life of the furnace. Which furnaceshould SI choose? What is the annualized cost of their choice?Assume a discount rate of 6% and ignore all taxes.