Problem $1$:

Your firm is considering purchasing a new piece of equipment to enhance production. Your firm has narrowed the possibility to four models, which perform equally well. However, the method of financing the four models is different. All models have an interest rate of $9\mathrm{.}00$ percent.

Model A requires an ordinary annuity of $$2,500$ per year for the next ten years.

Model B requires your company to pay $$20,450$ for the equipment at the end of the first year.

Model C requires an annuity due payment of $$5,250$ per year for the next four years.

Model D requires the following end$-$of$-$year payment schedule:

$\backslash$table$[[$Years:$,1,2,3,4,5],[$Cash Flows $($Model D$)$:$,$$$7,000,$$$2,000,$$$4,000,$$$6,000,]]$

Required: Provide an answer to each of the following in the area provided. Round all final calculations to two decimal places. If needed, you can access the interest tables here.

$($a$)$: What is the value today of Model A$?$

$($b$)$: What is the value at time zero of model B$?$

$($c$)$: What is the present value of Model C$?$

$($d$)$: What is the net present value of model D$?$

$($e$)$: What model is the best for your company? Explain your answer.