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Your company is looking to outsource its maintenance services for the next 6 years, and is shopping around for alternative contracts. They settle on the

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Your company is looking to outsource its maintenance services for the next 6 years, and is shopping around for alternative contracts. They settle on the following three alternatives: I. Alternative A: A three-year contract with a single initial payment of $59,000 2. Alternative B: A two-year contract with payments of $19,470 at the end of year 1 and $20,060 at the end of year 2 Alternative C: A three-year contract with payments of $29,500 at the ends of years 1 and 3. 3. Assuming a company MARR of 5% and a 6-year study period (ie., contract renewals will be necessary), a) b) [9 points] Draw an accurate cash flow diagram for each alternative over the given study period. [21 points] Which alternative should be selected based on a PRESENT WORTH analysis

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