Jacob is considering the replacement of the heating system for his building. There are thre e alternatives. All are natural-gas-fired furnaces, but they vary in energ y efficiency. A'lodel A is leased at a cost of $500 per year over a 10-vear study period. There are installation charges of S500 and no salvage value. It is expected to provide energy savings of $200 per year. Model B is purchased for a total cost of $3600, including installation. It has a salvage value of Si000 after 10 years of service, and is expected to provide energy savings of S500 per year. Model C is also purchased, for a total cost of $8000, including installation. However, half of this cost is paid now, and the other half is paid at the end of two years. It has a salvage value of Si00 0 after 10 years, and is expected to provide energy savings of $1000 per year. For a ALARR of 12% and using a rate of return method, which heating system should be installed? One model must be chosen.