Compute the present value, P, for the following cash flows. I200 [200 1200 5'23 sea son sou 0121456739 r = IU'E Walt Wallace Construction Enterprises may buy a new dump truck with a 10-year life. Interest is 6%. The cash flows for two likely models are as follows: Model Flrst Annual Operating Annual Salvage Cost Cost Income Value 5-24 A $65,000 $8,000 $16,000 $25,000 A 3 59,000 10,000 17,500 19,000 ((1) Using present worth analysis, which truck should the firm buy, and why? 5-44 0 5- 53 (1)) Before the construction company can close the deal, the dealer sells out of Model B and cannot get any more. What should the firm do now. and whv? An elevator company has redesigned their product to be 50% more energy efficient than hydraulic designs. Two designs are being considered for implementation in a new building. ((1) Given an interest rate of 20% which bid should be accepted? Alternatives A B Installed cost $45,000 $54,000 Annual cost 2700 2850 Salvage value 3000 4500 Life, in years 10 15 (0) Research and list a few attributes that the company might be using in the elevators' major systems: drive, cab, hoist, and control mechanisms that make them more energy efficient. A subdivision developer must constructa sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant and future replacement plants will cost $150,000 each. If the trust fund earns 8% interest, what is the developer's capitalized cost