
use x= SR8000
include cash flow diagram
NPW of option 1 = -164000
NPW of option 2 = -(120000+8000) - 12000 - (12000 - 1000)*(P/F,12%,20) + 1000*(P/F,12%,40) - 1000*(P/A,12%,40)
= -(120000+8000) - 12000 - (12000 - 1000)*0.103667 + 1000*0.010747 - 1000*8.243777
= -149373.37
As Present cost of option 2 is less, it should be selected
CFD of option 1

CFD of option 2

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Security service for a corporation housed in a large office building/training complex can be provided in one of two ways. A service contract for 4 years will cost $35,000 per year, payable at the beginning of each year. If renewed for 4 more years, the cost will be $38,000 per year. A different service contract can be obtained at a lower cost of $ 31,627 per year, provided the corporation purchases certain equipment that will cost $ 81,338 and have...
with CASH FLOW DIAGRAM PLEASE
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please help with these accouting questions!
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