First: [3] What is the value of A that makes these two cash flows equal. A = ? $7,000 $6,000 $5,000 $4.000 $3,000 $2,000 $1,000 i = 10% per 6 month 2 3 4 5 6 7 8 0 1 End of Six-Month Period 1 1 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 First cost, $ - 15,000 Annual lease cost, S per year --3,500 Deposit return, $ 1,000 Lease term, years 6 Determine which lease option should be selected on the basis of an annual worth comparison Location B -18,000 -3,100 2,000 9