For the defender, it is given that

the annual equivalent costs for one year is $2,000, for two years is $2,300, for three years is $2,600, for four years is $1,900 and for five years is $2,200.

For the challenger, it is given that

the annual equivalent costs for one year is $6,000, for two years is $4,000, for three years is $4,300, for four years is $5,000 and for five years is $5,200.

Using the finite planning horizon of 6 years, apply the present worth analysis to determine (j0,1), (j,2),(j,3).

Assume i=10%.

Question 12 options:

a)

Between $13,300 and $14,500

b)

Between $15,800 and $16,500

c)

Between $14,500 and $15,500

d)

Between $17,800 and $18,500

e)

None of the answers are correct

f)

Between $24,800 and $25,100