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Qu est ion 4: C he i ceBetweenAltern atiyes Pro 1 0E5_2WSAIt1 Philip wants to buy a collection of modern furniture. Two options exist and

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Qu est ion 4: C he i ceBetweenAltern atiyes Pro 1 0E5_2WSAIt1 Philip wants to buy a collection of modern furniture. Two options exist and have the characteristics shown in the table. Assume an annual compound interest rate of 9%. Option A Option B Initial cost 5000 3000 Annual operating cost 600 700 Salavage value 600 200 Lifetime (years) 6 3 Part 1 1.a. Using an annual cash flow analysis on an appropriate analysis period, determine The EUAC for Option A, (Round your answer to the nearest integer.) 1634.76 9 v 100% 1.b. and the EUAC for Option B (Round your answer to the nearest integer.) number {rto|=0.01, ato|=1e08) 0- Part 2 2.a. Use the present worth analysis with fixed analysis period of 3 years. Consider the following market values for Option A: $4,000 after 1 year, $3,000 after 2 years, $2,000 after 3 years, $1,000 after 4 years, $900 after 5 years. Determine the PWC for Option A (Round your answer to the nearest integer.) number {rtol=0.01, atol=1e08) 0- 2.b. and the PWC for Option B (Round your answer to the nearest integer.) number {rtol=0.01, atol=1e-08) 0

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