First: [5] A project engineer with EnvironCare is assigned to start up a new office in a city where a 6-year 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 costs - 15,000 -18.000 Annual lease cost. 5 per year -3.500 -3.100 Deposit retum, s 1.000 2.000 Lease term. years EnvironCare has a practice of evaluating all projects over a 5-year period. If the deposit returns are not expected to change, which location should be selected? . Justify your answer using PW method. 6 9 Second: [3] Alpha Construction just purchased a new track hoe attachment costing $12.500. The CEO, All, expects the implement will be used for five years when it is estimated to have a salvage value of 54.000. Maintenance costs are estimated to be so the first year and will increase by S100 each year thereafter. If a 12% interest rate is used, what is the equivalent uniform annual cost of the implement