QUESTION 1 Based on Inflation: The following questions are related to this scenario: A vendor approached you to sell you a high-tech drill that will save $100,000/yr for the next 10 years. Assume that inflation will stay constant for the next 10 years at 5%, total price escalation rate for operatin expenses = 6%, and your company has an MARR of 15%. The vendor is asking $1,000,000 for his drill. Calculate the PW of the expected savings of this drill using ACTUAL money analysis only. ca) $656,400 b) $765,250 cc) $1,000,000 Cd) $1,656,400 QUESTION 2 Based on your calculations above, would you recommend this purchase or not? Ca) Yes, it would save us money b) No, it would not save us money CC) It is irrelevant since the cost savings cannot be calculated as given Cd) More information is required