The Pentagon is deciding between two models of light- duty support vehicles proposed by two high- technology defense contractors. The costs associated with each model are shown below. Which model should be selected if the MARR is 16% per year based on the future worth method? 
Definitions:
American Option
A type of options contract that allows holders to exercise the option at any time up to and including the expiration date.
European Option
A type of options contract that can only be exercised at its expiration date, not before, as opposed to American options which can be exercised at any time before expiration.
Flexibility
The ability to adapt to changes, make decisions quickly and adjust to new conditions or environments.
Futures Contracts
Agreements to buy or sell a particular commodity or financial instrument at a predetermined future date and price.
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