"Motors R Us requires a specific painting process for one its automobiles that will be manufactured for exactly eight years. Three options are available. Neither option 2 nor option 3 can be repeated after its process life. However option 1 will always be available at the same cost during the period of eight years. Here are the options:
-Option 1 is to subcontract out the process at a cost of $102,000 per year.
-Option 2 costs $173,000 immediately and has annual operating and labor costs of $88,000 and a useful service life of eight years with a salvage value of $54,000.
-Option 3 costs $130,000 immediately and has annual operating and labor costs of $52,000 and a useful service life of five years with a salvage value of $16,000. For years six through eight, the firm will follow option 1.
Enter the ""net present cost"" for the option that you would recommend if i = 13.2%. Enter your answer as positive number."