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A- First: (31 What is the value of that makes these two cash flows equal $7,000 $6,000 $5,000 $4.000 $3,000 $2.000 $1,000 1-10% per 6
A- First: (31 What is the value of that makes these two cash flows equal $7,000 $6,000 $5,000 $4.000 $3,000 $2.000 $1,000 1-10% per 6 month 0 End of Six-Month Period Second: [5] A project engineer with EnvironCare is assigned to start up a new office in a city where the contract has been finalized to collect and analyze ozone- level readings. Two lease options are available, each with a first cost, annual lease cost, and deposit-retum estimates shown below. The MARR is 15% per year 1 4 5 6 7 2 End of Six-Month Period Location A First cost, - 15,000 Annual lease cost, Sper year - 3.500 Deposit return, 1.000 Lease term, years 6 Determine which lease option should be selected on the basis of an annual worth comparison Location B -18.000 -3.100 2.000
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