3. (12 Points) ANNUAL CASH FLOW ANALYSIS 3.1.Comparison between the three option is presented in the table below: A B Initial cost $12,500 $15,000 $17,500 Annual benefit $1,500 $3,500 $2,500 Life in years Infinity 7 Years 15 Years Interest rate 8% Based on the information given above, choose the best alternative by using annual cash flow analysis only. Please note you need to show the steps for getting full credit. Just selecting the correct option without showing the steps will result in getting zero points. A) Alt. A B) Alt. B C) Alt. C D) Either alt. B or alt. C 3.2.The cash flow diagram is shown below, find the unknown value of D. For the computation, use an interest rate of 10%. 1.5D D D D D 4 D A 1 2 5 6 3 4 $500 A) $89.23 B) $28.12 C) $79.41 D) None of the options 3.3.Sam is planning to buy a new car that is one sale at $22,000. He got a loan with 6% interest rate for 4 years that requires him to pay 10% down. Sam plans to paying 30 monthly payments, he plans to pay off remaining balance. How much he owes after 30 monthly pa ent A) $3995 B) $7990 C) $465 D) None of the options