Sweet 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 life of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $1,000 per year for the first 5 years, $2,000 per year for the next 10 years, and $3,000 per year for the last 5 years. Following is each vendor's sales package. Vendor A: $53,880 cash at time of delivery and 10 year-end payments of $17,280 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 $9,270. Vendor B: Forty semiannual payments of $10,330 each, with the first installment 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 $163,600 will be due upon delivery. Assuming that both Vendors A and B will be able to perform the required year-end maintenance, that Sweet's cost of funds is 10%, and the machine will be purchased on January 1, compute the following: Click here to view factor tables. The present value of the cash flows for vendor A. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Click here to view factor tables. The present value of the cash flows for vendor A. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value of the cash outflows for this option is \$ The present value of the cash flows for vendor B. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value of the cash outflows for this option is $ The present value of the cash flows for vendor C. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value of the cash outflows for this option is \$ From which vendor should the press be purchased? TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) \begin{tabular}{|c|c|c|c|c|c|c|} \hline(n) & \multicolumn{4}{|c|}{PVFn,i=(1+i)n1=(1+i)n} & \multirow[b]{2}{*}{5%} & \multirow[b]{2}{*}{6%} \\ \hline Periods & 2% & 221% & 3% & 4% & & \\ \hline 1 & .98039 & .97561 & .97087 & .96154 & .95238 & .94340 \\ \hline 2 & .96117 & .95181 & .94260 & .92456 & .90703 & .89000 \\ \hline 3 & .94232 & .92860 & .91514 & .88900 & .86384 & .83962 \\ \hline 4 & .92385 & .90595 & .88849 & .85480 & 82270 & .79209 \\ \hline 5 & .90573 & .88385 & .86261 & .82193 & .78353 & .74726 \\ \hline 6 & .88797 & .86230 & .83748 & .79031 & .74622 & .70496 \\ \hline 7 & .87056 & .84127 & .81309 & .75992 & .71068 & .66506 \\ \hline 8 & .85349 & .82075 & .78941 & .73069 & .67684 & .62741 \\ \hline 9 & .83676 & .80073 & .76642 & .70259 & .64461 & .59190 \\ \hline 10 & .82035 & .78120 & .74409 & .67556 & .61391 & .55839 \\ \hline 11 & .80426 & .76214 & .72242 & .64958 & .58468 & .52679 \\ \hline 12 & .78849 & .74356 & .70138 & .62460 & .55684 & .49697 \\ \hline 13 & .77303 & .72542 & .68095 & .60057 & .53032 & .46884 \\ \hline 14 & .75788 & .70773 & .66112 & .57748 & .50507 & .44230 \\ \hline 15 & .74301 & .69047 & .64186 & .55526 & .48102 & .41727 \\ \hline 16 & .72845 & .67362 & .62317 & .53391 & .45811 & .39365 \\ \hline 17 & .71416 & .65720 & .60502 & .51337 & .43630 & .37136 \\ \hline 18 & .70016 & .64117 & .58739 & .49363 & .41552 & .35034 \\ \hline 19 & .68643 & .62553 & .57029 & .47464 & .39573 & .33051 \\ \hline 20 & .67297 & .61027 & .55368 & .45639 & .37689 & .31180 \\ \hline 21 & .65978 & .59539 & .53755 & .43883 & .35894 & .29416 \\ \hline 22 & .64684 & .58086 & .52189 & .42196 & .34185 & .27751 \\ \hline 23 & .63416 & .56670 & .50669 & .40573 & .32557 & .26180 \\ \hline 24 & .62172 & .55288 & .49193 & .39012 & .31007 & .24698 \\ \hline 25 & .60953 & .53939 & .47761 & .37512 & .29530 & .23300 \\ \hline 26 & .59758 & .52623 & .46369 & .36069 & .28124 & 21981 \\ \hline 27 & .58586 & .51340 & .45019 & .34682 & .26785 & .20737 \\ \hline 28 & .57437 & .50088 & .43708 & .33348 & .25509 & .19563 \\ \hline 29 & .56311 & .48866 & .42435 & .32065 & .24295 & .18456 \\ \hline 30 & .55207 & .47674 & .41199 & .30832 & .23138 & .17411 \\ \hline 31 & .54125 & .46511 & .39999 & .29646 & .22036 & .16425 \\ \hline 32 & .53063 & .45377 & .38834 & .28506 & 20987 & .15496 \\ \hline 33 & .52023 & .44270 & .37703 & .27409 & 19987 & .14619 \\ \hline 34 & .51003 & .43191 & .36604 & .26355 & .19035 & .13791 \\ \hline 35 & .50003 & .42137 & .35538 & .25342 & .18129 & .13011 \\ \hline 36 & .49022 & .41109 & .34503 & .24367 & .17266 & .12274 \\ \hline 37 & .48061 & .40107 & .33498 & .23430 & .16444 & .11579 \\ \hline 38 & .47119 & .39128 & .32523 & .22529 & .15661 & .10924 \\ \hline 39 & .46195 & .38174 & .31575 & .21662 & .14915 & .10306 \\ \hline 40 & .45289 & .37243 & .30656 & .20829 & .14205 & .09722 \\ \hline \end{tabular} TARI F G ? Precent Val of 1 TABLE 6.4 Present Value of an Ordinary Annuity of 1 TABLE 6.4 Present Value of an Ordinary Annuity of 1