You are considering two different methods of constructing a new warehouse. The first method uses prefabricated building segments, would have an initial cost of $$4\mathrm{.}8$ million, would have annual maintenance costs of $$100,000$ and would last for $25$ years. The second alternative would employ a new carbon fibre panel technology, would have an initial cost of $$6$ million, would have maintenance costs of $$525,000$ every ten years and is expected to last $40$ years. Both buildings are in CCA class $1($CCA rate of $4\%).$ The salvage value for each would be $25\%$ of initial cost. The firm uses a $15\%$ cost of capital and it has a $38\%$ tax rate.

Calculate the NPV for each machine using the six step approach $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

What is the NPV for Alternative A$?$ Answer

What is the NPV for Alternative B$?$ Answer

What is the EAC for Alternative A$?$ Answer

What is the EAC for Alternative B$?$