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Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is

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Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to keep the existing auger, which has a current market value of $9,000. It will have a $0 salvage value after 7 more years. Alternative Bis to buy a new auger that will cost $61,000 and will have a $12.000 salvage value after 7 years. O&M costs are $8,000 for the new auger, Clear Water can trade in the existing auger on the new one for $15,000. Alternative C is to trade in the existing auger on a "treated auger" that requires vastly less O&M cost at only $3,500 per year. It costs $71,000, and the trade-in allowance for the existing auger is $17,000. The "treated auger" will have an $18,000 salvage value after 7 years. Alternative Disto sell the existing auger on the open market and to contract with a current competitor to use their equipment and services to perform the drilling that would normally be done with the existing auger. The competitor requires a beginning-of-year retainer payment of $12,000. End-of-year O&M cost would be $8,000. MARR is 15%, and the planning horizon is 7 years. Click here to access the TVM Factor Table Calculator Parta Clearly show the cash flow profile for each alternative using a cash flow approach (insider's viewpoint approach). EOY Alternative A Alternative B Alternative C Alternative D 0 $ $ $ $ 1 $ $ $ N 2 $ $ $ $ 3 $ $ $ $ 4 $ A $ $ $ $ 5 $ $ $ $ 6 $ $ $ $ 7 $ $ $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10

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