A lumber company is planning the purchase of a small warehouse. The key parameters of the three warehouses under scrutiny are provided below. Parameters 1. Initial Cost ($) ALPHA $250,000 BETA $325,000 GAMMA $375,000 2. Revenues (35) $230,000 at EOY1 increasing by 2% annually thereafter $260,000 at EOY1 increasing by $3,000 annually thereafter $290,000 at EOY1 increasing by 1% annually thereafter 3. Operating Costs 6) $125,000 annually $155,000 at EOY1 decreasing by $1,000 annually $190,000 at EOY1 decreasing by 1% annually thereafter thereafter 4. End-of-life salvage value 3 $100,000 $130,000 $90,000 5. Useful life (years) 3 years 4 years 6 years All parameter values are fictitious. EOY = End-of-year The industry standard for these mixers is 2 years MARR = 10% ALPHA's Net Future Worth (at EOY3) is between GAMMA's Net Present Worth (at EOYO) is between If the BETA warehouse was used for twelve (12) (or any multiple Of 4) years with no change to any of its initial parameter values, its annual equivalent worth (AEW) would be between is between three (3) years is between ALPHA's annual equivalent worth (AEW) is between The best warehouse based on the AEW method is The best warehouse based on the Net Present Worth (NPW) method is Based on the simple payback method, BETA's recovery period (in years) Based on the simple payback method, GAMMA's \"project balance" after WHITE Assignment 1 Fall 2022 Alpha Beta Gamma EOY Cash Inflows Cash Outlows Cash Inflows Cash Outlows Cash Inflows Cash Outflows 0 0 250,000 0 325,000 0 375,000 230,000 125,000 260,000 155,000 290,000 190,000 2 234,600 125,000 263,000 154,000 292,900 188,100 3 239,292 25,000 266,000 153,000 295,829 186,219 4 269,000 22,000 298,787 184,357 5 301,775 182,513 6 304,793 90,688 7 8 10DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST n (F/P,i%,n) (P/F,i%,n) (A/P,1%, n) (P/A,i%,n) (A/F,1%,n) (F/A,i%,n) (A/G,1%, n) (P/G,i%, n) 1.1000 0.9091 1.1000 0.9091 1.0000 1.0000 0.0000 0.0000 IN 1.2100 0.8264 0.5762 1.7355 0.4762 2.1000 0.4762 0.8264 3 1.3310 0.7513 0.4021 2.4869 0.3021 3.3100 0.9366 2.3291 1.4641 0.6830 0.3155 3.1699 0.2155 4.6410 1.3812 4.3781 5 1.6105 0.6209 0.2638 3.7908 0.1638 6.1051 1.8101 6.8618 1.7716 0.5645 0.2296 4.3553 0.1296 7.7156 2.2236 9.6842 1.9487 0.5132 0.2054 4.8684 0.1054 9.4872 2.6216 12.7631 2.1436 0.4665 0.1874 5.3349 0.0874 11.4359 3.0045 16.0287 2.3579 0.4241 0.1736 5.7590 0.0736 13.5795 3.3724 19.4215 10 2.5937 0.3855 0.1627 6.1446 0.0627 15.9374 3.7255 22.8913 11 2.8531 0.3505 0.1540 6.4951 0.0540 18.5312 4.0641 26.3963 12 3.1384 0.3186 0.1468 6.8137 0.0468 21.3843 4.3884 29.9012 13 3.4523 0.2897 0.1408 7.1034 0.0408 24.5227 4.6988 33.3772 14 3.7975 0.2633 0.1357 7.3667 0.0357 27.9750 4.9955 36.8005 15 4.1772 0.2394 0.1315 7.6061 0.0315 31.7725 5.2789 40.1520 16 4.5950 0.2176 0.1278 7.8237 0.0278 35.9497 5.5493 43.4164 17 5.0545 0.1978 0.1247 8.0216 0.0247 40.5447 5.8071 46.5819 18 5.5599 0.1799 0.1219 8.2014 0.0219 45.5992 6.0526 49.6395 19 6.1159 0.1635 0.1195 8.3649 0.0195 51.1591 6.2861 52.5827 20 6.7275 0.1486 0.1175 8.5136 0.0175 57.2750 6.5081 55.4069