A firm is considering two possible capital asset purchases that will increase the firm's revenues. The table below outlines key parameters for the two options.

Parameters	Option A	Option B
capital cost CCA rate (d) operating cost per yr escalation rate on operating costs (%/yr) sales revenues per yr escalation rate on sales revenues (%/yr) expected life of capital (n) Salvage value capital cost escalation rate interest rate on loan marginal tax rate MARR (discount rate)	$ 70,000 30% $ 80,000 2% $ 110,000 3% 5 $ 8,000 3% 4% 30% 10%	$ 240,000 40% $ 90,000 2% $ 200,000 3% 10 $ 5,000 3% 4% 30% 10%

Analyses have been done for both of the options, in the attached Excel file for Problem 8.

Unfortunately, the analyst made 11 errors in the analysis. You must identify all of the errors, and describe why each one is an error. You do NOT have to fix the errors. Easy errors are worth fewer points than more difficult errors.

An error that appears in multiple rows counts as one error, not several errors. For example, if Option A sales revenues aren't escalated properly, years 2-5 will have incorrect values. This would be one error, not four errors.

11. (5.5 points) A rm is considering two possible capital asset purchases that will increase the firm's revenues. The table below outlines key parameters for the two options. capital cost 3 70,000 15 240,000 CCA rate (d) 30% 40% operating cost per yr 15 80,000 111 90,000 escalation rate on operating costs (%/ yr) 2% 2% sales revenues per yr 11 110,000 3 200,000 escalation rate on sales revenues (0/ o / yr) 3%) 3% expected life of capital (11) 5 10 Salvage value $ 8,000 15 5,000 capital cost escalation rate 3% 3% interest rate on loan 4% 4% marginal tax rate 30% 30% MARR discount rate 10% 10% Analyses have been done for both of the options, in the attached Excel file for Problem 8. Unfortunately, the analyst made 11 errors in the analysis. You must identify all of the errors, and describe why each one is an error. You do NOT have to x the errors. Easy errors are worth fewer points than more difcult errors. An error that appears in multiple rows counts as one error, not several errors. For example, if Option A sales revenues aren't escalated properly, years 2-5 will have incorrect values. This would be one error, not four errors