A firm must decide between constructing a new facility or renting a comparable office space. There are two random outcomes for acquiring space, as shown irn figure below. Each would accommodate the expected growth of this company over the next 10 years. The cost of rental space is expected to escalate over the 10 years for each rental outcome. The option of constructing a new facility is also defined in figure below. An initial facility could be constructed with the costs shown. In five years, additional space will be required. At that time, there will be an option to build an office addition or rent space for the additional space requirements The probabilities for each alternative are shown. MARR for the situation is 8% per year. A PW analysis is to be conducted on the alternatives which course of action should be recommended? Note: At 2, the PW(8%) of the upper branch is-$5,139.00 k and the PW(8%) for the lower branch is-$4519.00 k. Click the icon to view the decision tree diagram Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Click the icon to iew the interest and annuity table for discrete compounding when the MARR is 6% per year. The PW for building the additional space is thousand. (Round to the nearest whole number.) The PW for renting the additional space is S thousand. (Round to the nearest whole number.) It's more economical tothe additional space Calculate the PW values at 1. PWbottom (896,-4] thousand (Round to the nearest whole number) PWtop (8%)-SLI thousand (Round to the nearest whole number ) It's more economical to a new facility. A firm must decide between constructing a new facility or renting a comparable office space. There are two random outcomes for acquiring space, as shown irn figure below. Each would accommodate the expected growth of this company over the next 10 years. The cost of rental space is expected to escalate over the 10 years for each rental outcome. The option of constructing a new facility is also defined in figure below. An initial facility could be constructed with the costs shown. In five years, additional space will be required. At that time, there will be an option to build an office addition or rent space for the additional space requirements The probabilities for each alternative are shown. MARR for the situation is 8% per year. A PW analysis is to be conducted on the alternatives which course of action should be recommended? Note: At 2, the PW(8%) of the upper branch is-$5,139.00 k and the PW(8%) for the lower branch is-$4519.00 k. Click the icon to view the decision tree diagram Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Click the icon to iew the interest and annuity table for discrete compounding when the MARR is 6% per year. The PW for building the additional space is thousand. (Round to the nearest whole number.) The PW for renting the additional space is S thousand. (Round to the nearest whole number.) It's more economical tothe additional space Calculate the PW values at 1. PWbottom (896,-4] thousand (Round to the nearest whole number) PWtop (8%)-SLI thousand (Round to the nearest whole number ) It's more economical to a new facility