Question: QUESTION 7 Listed below are two solutions for a service issue. Work out the present costs for option 1 for a 4 year period of

QUESTION 7 Listed below are two solutions for a service issue.

QUESTION 7 Listed below are two solutions for a service issue. Work out the present costs for option 1 for a 4 year period of time. Use a 8 % interest rate ----Option 1 ---------Option 2 First Cost-------15,000---- -35,000 Maintenance--------1200 yr---------900yr Salvage-------------100 -----------2000 Life-- --2 years -4 years 14620 17054 31674 34566

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