Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Eff Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i = 15% per year. The present worth of project B is $ | thousand. (Round to one decimal place.)Consider the cash flow data in the table below for two competing investment projects. At /=11%, which of the two projects would be a better choice? Click the icon to view the cash flows for the investment projects. Click the icon to view the interest factors for discrete compounding when / = 11% per year. The PW value for project A is $ . (Round to the nearest dollar.)You are considering two investment options. In option A, you have to invest $4,000 now and $800 three years from now. In option B, you have to invest $3,600 now, $1,700 a year from now, and $900 three years from now. In both options, you will receive four annual payments of $1,900 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when / = 10% per year. (a) The conventional payback period for option A is | | years. (Round to the nearest whole number place.)You are considering two types of machines for a manufacturing process. . Machine A has a first cost of $75,200, and its salvage value at the end of six years of estimated service life is $21,000. The operating costs of this machine are estimated to be $6,800 per year. Extra income taxes are estimated at $2,400 per year. . Machine B has a first cost of $44,000, and its salvage value at the end of six years' service is estimated to be negligible. The annual operating costs will be $11,500. Compare these two mutually exclusive alternatives by the present-worth method at i =13%. Click the icon to view the interest factors for discrete compounding when / = 13% per year. The present worth for machine A is $ thousand. (Round to the nearest whole number.)An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. . Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of $21 million would be required, and it is estimated that this plant facility would be in service for 25 years and have a salvage value of $0.9 million. The annual operating and maintenance costs (including income taxes) would be $0.4 million. . Alternative B. Spend $12 million now and follow this expenditure with future additions during the 10th year and the 15th year. These additions would cost $16 million and $8 million, respectively. The facility would be sold 25 years from now with a salvage value of $1.75 million. The annual operating and maintenance costs including income taxes) will be $250,000 initially and will increase to $0.35 million after the second addition (from the 11th year to the 15th year) and to $0.45 million during the final 10 years. (Assume that these costs begin one year subsequent to the actual addition.) On the basis of the present-worth criterion, if the firm uses 15% as a MARR, which alternative should be undertaken? Note: Adopt incremental cost approach. Click the icon to view the interest factors for discrete compounding when / = 15% per year. The present worth of Alternative A is $ | million. (Round to one decimal place.)