First: [3] What is the value of A that makes these two cash flows equal. $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 A = ? 0 i = 10% per 6 month 8 0 1 2 3 1 7 8 4 5 6 7 End of Six-Month Period 2 3 4 5 6 End of Six-Month Period Second: [5] A project engineer with EnvironCare is assigned to start up a new office in a city where the contract has been finalized to collect and analyze ozone-level readings. Two lease options are available, each with a first cost, annual lease cost, and deposit-return estimates shown below. The MARR is 15% per year Location A Location B First cost, - 15.000 - 18.000 Annual lease cost, $ per year -3.500 -3,100 Deposit return, $ 1.000 2.000 Lease term. years 6 9 Determine which lease option should be selected on the basis of an annual worth comparison