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Nash inc, a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate

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Nash inc, a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is substantially identical and each has a useful iffe of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $970 per year for the furst 5 years, $1,970 per year for the next 10 years, and $2,970 per year for the last 5 years. Following is each vendor's sales package. Vendor A: $51,370 cash at time of delivery and 10 year-end payments of $16,370 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 20 -year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $10,780. Vendor B: Forty semiannual payments of $9,920 each, with the first instaliment due upon delivery, Vendor B will perform all year-end maintenance for the next 20 years at no extra charge. Vendor C: Full cash price of $163,300 will be due upon delivery. Assuming that both Vendors A and B witr be able to perform the required year-end maintenance, that Nash's cost of funds is 10X, and the machine will be purchased on January 1, compute the following Click here to view factor tables. the present value of the cash fows for vendor A (Round factor values to 5 declmal ploces, es 1.25124 and final answer to 0 decimal places es. 458,5814) The present value of the cashoutfiows for this option is places, es. 458,581 . The present value of the cash outiows for this optioniss The present value of the cass flows tor vendor C (Round factor volues to 5 decimal places, 2.125124 and finai answer to 0 decimal ploces. 8 . 458,581. The present value of the cash outfows tor this optioniss

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