INPUT DATA French Com Japan Rail Car Initial Outflow $ (275,000.00) $ (195,000.00) PMT $ (10,000.00) $ (15,000.00) Useful Life - nper 10 6 rate 8% 8% CALCULATION =PV(rate,nper,pit, fv,type) PV of Operating Costs $ 67,100.81 $ 69,343.19 Acquisition Cost $ 275,000.00 $ 195,000.00 Net Present Cost $ 342,100.81 $ 264,343.19 =pmt (rate, nper,pv,fv,type) Useful Lives - nper 10 6 Annualized Cost $50,983.11 $57,181.50 The French Corp cars will cost $50,983 per year in today's dollars. The Japan Rail cars will cost $57,181.50 per year in today's dollars. Buy the French Corp cars