Question: Part II Please answer the following question: 1. CAPP, Inc. wants to evaluate two methods of shipping their products. The following cash flows are associated

Part II Please answer the following question: 1. CAPP, Inc. wants to evaluate two methods of shipping their products. The following cash flows are associated with each alternative: Cash Flows First cost Annual cost Annual benefit Savage value Useful life (years) Option 1 $700,000 18,000 154,000 142,000 10 Option 2 $1,400,000 27,000 303,000 210,000 10 Using interest rate of 15%, calculate the Equivalent Annual Cash Flow for each option, and based on this, decide which is the more desirable alternative.

Part II Please answer the following question: 1. CAPP, Inc. wants to evaluate two methods of shipping their products. The following cash flows are associated with each alternative: Using interest rate of 15%, calculate the Equivalent Annual Cash Flow for each option, and based on this, decide which is the more desirable alternative

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