A mutual fund offers class "A" shares which have a one-time 5.0% upfront load and an annual expense ratio of 0.76%.
This mutual fund also offers class "B" shares which have an annual 12b-1 fee of 0.55% and an annual expense ratio of 0.87%.
Assume that both classes of shares are similar in risk, return, and investment objectives.
Which class of shares makes more sense for an investor considering a 10-year investing horizon? Show your calculations.