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please help The factory manager is considering the following two quotes from two vendors for purchase and maintanance of an equipment Vendor X's estimates are
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The factory manager is considering the following two quotes from two vendors for purchase and maintanance of an equipment Vendor X's estimates are all in actual dollars, utile Vendor Ys estimates are al in year-zero dollars. Vendor X Vendor y Initial cost $9.200 $11,700 Annual cost 54.400 $3,500 Service life lyr) 10 10 Salvage value $3.680 $4,680 The manager utos a before tax road interest rate of % per year for economic analysis. If inflation rate is expected to average 3.7% per year over the next ten years, which vendor should the manager select that will minimize ve before-tax cost of ownership? COM (a) Calculato PW for each alternative (use negative sign for costa) The PW of Vendor X's estimates is $(Round to the nearest whole number) The PW of Vendor estimates is (Round to the nearest whole number) (b) The most economical alternative is O A Vendor O B. Vendor y Step by Step Solution
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