Apex Corporation requires a chemical finishing process for a product under contract for a period of six years. 3 Marketing Research and Data Analysisoptions are available. Neither Option 1 nor Option 2 can be repeated after it process life. However, Option 3 will always be available from H&H Chemical Corporation at the same cost during the contract period. The details of each option are as follows:

Option 1: Process device A, which costs $100,000, has annual operating and labor costs of $60,000, and has a useful service life of four years, with an estimated salvage value of $10,000.

Option 2: Process device B, which costs $150,000, has annual operating and labor costs of $50,000, and has a useful service life of six years, with an estimated salvage value of $30,000.

Option 3: Subcontract the process out at a cost of $100,000 per year.

According to the present-worth criterion, which option would you recommend at
i = 12%?