Question: please show step 1. (25 points) A grocery store is considering the purchase of a standby power generation system to operate during times of power-outs

please show step please show step 1. (25 points) A grocery store

1. (25 points) A grocery store is considering the purchase of a standby power generation system to operate during times of power-outs of the main electric power grid (like the ones that happened in 2019 Fall due to wildfires). A manufacturer of a power generation system offers two types of financing: a. A down payment of $3,000 and an annual payment of $1,000 for 12 years. b. An annual payment of $1,300 for 12 years with no down payment. If the interest rate for financing is 8%, which of the two financing schemes is more economical based on present value criterion? Show your formulae and calculations

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