Question: Question 2 36 pts In the table below, the cash flow values of three mutually exclusive alternatives, as vendors to outsource a project, have been

 Question 2 36 pts In the table below, the cash flow

Question 2 36 pts In the table below, the cash flow values of three mutually exclusive alternatives, as vendors to outsource a project, have been give. (MARR=5%) Vendor 1 Vendor 2 Vendor 3 Initial investment cost $130,000 $320,000 $220,000 Operating and $3000 in year 1 and it $4000 in year 1 and it maintenance cost $5,500/yr increases by $100 ever increases by 2% every year after that year after that Recurring cost $6000 every three $3000 every three year $1000 every two year year Salvage value $15,000 $20,000 Useful life (years) 33 36 1. Which of these three vendors would you recommend to be selected? (27 points) 2. If you would like the second best alternative to become the best alternative, how much its initial investment should be reduced to in order for it to become the best alternative? (9 points)

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