6. 2.51 Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (year 1) the cost for check valve components is $9000. Based on closure of a new contract with a distributor in Malaysia and volume discounts, the company expects this cost to decrease. The cost in year 2 and each year thereafter should decrease by $560.

(a) Using factors, what is the equivalent annual cost for a five-year period at an interest rate of 10%

per year?

(b) Solve using a spreadsheet and compare the two methods to determine the A value.