3 Valuation and the Firm 2 TABLE 8.3 ows (S thousands) for er Options, Expressed lent Annual Annuities Year PVat10% A 12.49 B 10.47 -5.02 -5.02 5.02 -6.03-6.03 PROBLEM 9 You are about to sign the contract for server A from Table 8.2 when a third vendor approaches you with nt another option that lasts for four years. The cash flows for server C are given below. Should you choose the new option or stick with server A? 0 Server C-14 1.2 S thousands) SOLUTION PLAN nntin to server A, we need to put server C on an equal foot