A firm must decide between constructing a new facility or renting a comparable office space.

s S thousand (Round to the nearest whole number) O&M-Annual Operating and maintenance expense O&M- $860 k/year (10 years) 0.45 inflates at 6%/ year O&M-$690 k/year (10 years) Inflates at 8%/ year Investment $25 k O&M-$245 k/year (5 yr) 0.75 (BA nvestment-$5.6 mil Resale+$1.7 mil at EOY 10 O&M-$140 k/year (5 yr) 0.25 PW -5,316 k Investment -$10.9 mil Resale +$18 mil 2 at EOY 10 Investment -$27 k PW O&M-$1.1 mil / year (5 yr) 0.60 -4,579 k RA O8M-$1.2 mil/ year (5 yr B O8M $180 k/yr (5 yr) 0.55 O&M- $140 k/year (10 years) B- Build New Facility R-Rent New Facility BA-Build Addition RA-Rant Addition 0.15 O&M-$320 k/year (10 years) s S thousand (Round to the nearest whole number) O&M-Annual Operating and maintenance expense O&M- $860 k/year (10 years) 0.45 inflates at 6%/ year O&M-$690 k/year (10 years) Inflates at 8%/ year Investment $25 k O&M-$245 k/year (5 yr) 0.75 (BA nvestment-$5.6 mil Resale+$1.7 mil at EOY 10 O&M-$140 k/year (5 yr) 0.25 PW -5,316 k Investment -$10.9 mil Resale +$18 mil 2 at EOY 10 Investment -$27 k PW O&M-$1.1 mil / year (5 yr) 0.60 -4,579 k RA O8M-$1.2 mil/ year (5 yr B O8M $180 k/yr (5 yr) 0.55 O&M- $140 k/year (10 years) B- Build New Facility R-Rent New Facility BA-Build Addition RA-Rant Addition 0.15 O&M-$320 k/year (10 years)