Problem C$-3$A Determine present value alternatives $($LOC$-2,$ C$-3)$

Hollywood Tabloid needs a new state$-$of$-$the$-$art camera to produce its monthly magazine. The company is looking at two cameras that

are both capable of doing the job and has determined the following:

Camera $1$ costs $$5,000.$ It should last for eight years and have annual maintenance costs of $$200$ per year. After eight years, the

magazine can sell the camera for $$400.$

Camera $2$ costs $$4,500.$ It will also last for eight years and have maintenance costs of $$800$ in year three, $$900$ in year five, and

$$1,000$ in year seven. After eight years, the camera will have no resale value. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and $PV{A}_{?}$ of $$1)($Use

appropriate factor$($s$)$ from the tables provided. Round your answers to $2$ decimal places.$)$

Required:

$1-$a$.$ Assume that an interest rate of $9\%$ properly reflects the discount rate in this situation and that maintenance costs are paid at the

end of each year. Determine the total cost of cameras.