5. Your company plans to purchase a new front-end loader for $400,000 and use it for eight years. The company will pay for the equipment from their retained earnings via a wire transfer to the bank. After eight years, its estimated salvage value will be $70,000. Your cost of capital (i) is 4.5%. Your estimating department is interested in determining what the loader will cost your company each year (uniform annual cost) to apply the proper costs to projects they are bidding on. The cost is based only on the purchase price and the salvage value. (Hint: P to AP,F to AF,AP minus AF ) (2 points) a. Which equations should be used to solve the problem (number)? b. What is the equivalent annual cost of acquiring the front loader? (AP) c. What is the equivalent annual "income" based on selling the loader after its useful life? (AF) d. What is the contractor's annual cost of owning the loader? 5. Your company plans to purchase a new front-end loader for $400,000 and use it for eight years. The company will pay for the equipment from their retained earnings via a wire transfer to the bank. After eight years, its estimated salvage value will be $70,000. Your cost of capital (i) is 4.5%. Your estimating department is interested in determining what the loader will cost your company each year (uniform annual cost) to apply the proper costs to projects they are bidding on. The cost is based only on the purchase price and the salvage value. (Hint: P to AP,F to AF,AP minus AF ) (2 points) a. Which equations should be used to solve the problem (number)? b. What is the equivalent annual cost of acquiring the front loader? (AP) c. What is the equivalent annual "income" based on selling the loader after its useful life? (AF) d. What is the contractor's annual cost of owning the loader