Additional explanation is necessary: the NCF profile of Alternative 1 that is shown above is the net result of a $20,000/year lease payment payable at the beginning of each year, plus an end-of-year net revenue of $28,000. This lease arrangement may be renewed in 3-year increments; however, premature cancellation of the lease results in a lease termination penalty (cost) of $10,000 at the time of cancellation. The NCFs of all other alternatives are expected to repeat indefinitely as shown.

If a least-common-multiple-of-lives approach is to be used, specify the planning horizon and the complete set of cash flows for each alternative.

Planning Horizon: 6 years

Planning Horizon: 5 years

what are those two plans's cash flows?

Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively. Their net cash flow (NCF) and salvage value (SV) profiles are as follows: Alternative 1 Alternative 1 Alternative 2 Alternative 2 Alternative 3 Alternative 3 End of Year NCF1 SV1 NCF2 SV2 NCF3 SV3 -$20,000 $8,000 $8,000 $28,000 $40,000-$70,000 $30,000 30,000 $30,000 $30,000 30,000 $30,000 0 -$40,000 $20,000 $20,000 $20,000 $20,000 $70,000 $50,000 $30,000 $20,000 $10,000 $5,000 $2,000 2 3 4 $30,000 $20,000 $10,000 Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively. Their net cash flow (NCF) and salvage value (SV) profiles are as follows: Alternative 1 Alternative 1 Alternative 2 Alternative 2 Alternative 3 Alternative 3 End of Year NCF1 SV1 NCF2 SV2 NCF3 SV3 -$20,000 $8,000 $8,000 $28,000 $40,000-$70,000 $30,000 30,000 $30,000 $30,000 30,000 $30,000 0 -$40,000 $20,000 $20,000 $20,000 $20,000 $70,000 $50,000 $30,000 $20,000 $10,000 $5,000 $2,000 2 3 4 $30,000 $20,000 $10,000