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Little Dino, located in Los Angeles, does well delivering sandwiches to college students. The owner is installing four portables in-car systems to increase sales. Each

  1. Little Dino, located in Los Angeles, does well delivering sandwiches to college students. The owner is installing four portables in-car systems to increase sales. Each system costs $2,600, has 5-year life, and salvage value of $400. The operating cost for all systems is $650 for the first year, increasing by 10% per year. The ROI is 10%. Perform annual worth analysis for the owner, answering: Estimated sales increase is $1,200 per year for all 4 systems. Choose the closest value.

1.

-$3,346

2.

-$3,475

3.

-$3,262

4.

-$3,701

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