You are considering two investment options. In option A, you have to invest $4,000 now and $800 three years from now. In option B, you have to invest $3,600 now, $1,700 a year from now, and $900 three years from now. In both options, you will receive four annual payments of $1,900 each. (You will get the first payment a year from now.) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year. Click the icon to view the interest factors for discrete compounding when i = 10% per year. (a) The conventional payback period for option A is | years. (Round to the nearest whole number place.)To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a cost of $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the first 15 years and $100,000 a year thereafter. Compute the capitalized cost of perpetual service at i = 7%. Click the icon to view the interest factors for discrete compounding when i = 7% per year. The capitalized cost of perpetual service is $ | million. (Round to three decimal places.)Consider the cash flow data in the table below for two competing investment projects. At /= 11%, which of the two projects would be a better choice? Click the icon to view the cash flows for the investment projects. Click the icon to view the interest factors for discrete compounding when i= 11% per year. The PW value for project A is $ . (Round to the nearest dollar.) i More Info - X Cash Flow Data (Unit: $ thousand) Project A Project B - $1, 100 - $2,800 - 1,200 - 800 - 495 750 965 900 965 1,200 3 0 0 VO UI A W N - OS 1,315 1,830 1,735 1,560 805 800 805 860 405 340 710 1,020 Print Done