1.Sundance Detective Agency purchased new surveillance equipment with the following estimates. The year index is k = 1, 2, 3, ...

First cost$1050

Annual maintenance cost$70 + 5k per year

Extra annual revenue$200 + 50k per year

Salvage value$600 for all years

i.Calculate the simple payback and discounted payback period assuming MARR = 10% per year in specific value.

ii.Calculate the simple payback and discounted payback period assuming the agency wants to make a return of 10% per year. Assume still an MARR = 10% per year.