Chapter 4, Problem 007 Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively. Their net cash fiow (NCF) and salvage value (SV) profiles are as foillows: Alternative 1 Alternative 1 Alternative 2 Alternative 2 Alternative 3 Alternative3 -$20,000 $8,000 $8,000 $28,000 $40,000 $40,000 $70,000 $0,000 $20,000 $30,000 $30,000 $50,000 -$20,000 $20,000 $30,000 $30,000 $20,000 $10,000 $30,000 20,000 $0 $30,000 $10,000 $30,000 $5,000 30,000 $2,000 $20,000 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 each year, plus an end-of-year net revenue of $28,000. This lease arrangement may be renewed in 3-year increments; however, premature cancelation of the lease results in a lease termination penalty (cost) of $10,000 at the time of cancellation. The NCPs of all other alternatives are expected to repeat indefinitely as shown. Clickhere to access the TVM Factor Table Calculator Chapter 4, Problem 007 Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively. Their net cash fiow (NCF) and salvage value (SV) profiles are as foillows: Alternative 1 Alternative 1 Alternative 2 Alternative 2 Alternative 3 Alternative3 -$20,000 $8,000 $8,000 $28,000 $40,000 $40,000 $70,000 $0,000 $20,000 $30,000 $30,000 $50,000 -$20,000 $20,000 $30,000 $30,000 $20,000 $10,000 $30,000 20,000 $0 $30,000 $10,000 $30,000 $5,000 30,000 $2,000 $20,000 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 each year, plus an end-of-year net revenue of $28,000. This lease arrangement may be renewed in 3-year increments; however, premature cancelation of the lease results in a lease termination penalty (cost) of $10,000 at the time of cancellation. The NCPs of all other alternatives are expected to repeat indefinitely as shown. Clickhere to access the TVM Factor Table Calculator