You are considering the purchase of a new piece of equipment for your company and you have narrowed down the possibility to four models, which perform equally well. However, the methods of financing for the four models are different. All models have an opportunity cost of 9 percent. Model A requires your company to pay $18,750 for the equipment at the end of the first year. Model B requires an ordinary annuity of $2,500 per year for the next ten years. Model C requires an annuity due payment of $5,250 per year for the next four years. Model D requires the following payment schedule: Years 1 1 2 3 4 5 Cash Flows (Model D): $7,000 $2,000 $4,000 $6,000 $3,000 Required: What is the value today of Model A? Required: What is the value at time zero of Model B? Required: What is the present value of Model C? Required: What is the net present value of Model D? Required: Which model is the best for your company? Explain