Question: How can I solve using a calculator? (Using PMT, PV, FV, n, etc keys) Example 8.5a Computing an Equivalent Annual Annuity (EAA) to help analyze

How can I solve using a calculator? (Using PMT, PV, FV, n, etc keys)

Example 8.5a Computing an Equivalent Annual Annuity (EAA) to help analyze projects with different lives. Problem: You considering a maintenance contract from two vendors. Vendor Y charges $100,000 upfront and then $12,000 per year for the three-year life of the contract. Vendor Z charges $75,000 upfront and then $35,000 per year for the two-year life of the contract. Compute the NPV and EAA for each vendor assuming an 8% cost of capital

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