Triple Play Innovators Corporation (TPIC) plans to offer IPTV (Internet Protocol TV) service to North American customers starting soon. Perform an AW analysis of the EVA series for the two alternative suppliers available for the hardware and software. Let Te = 30% and after-tax MARR = 8%; use SL depreciation (neglect half-year convention and MACRS, for simplicity) and a study period of 8years.

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Vendor Hong Kong 4.2 milion 3.6 million Japan First cost,S Recovery period, years 8 Salvage value, $ GI OE, S per year 1,500,000 in year 1 increasing by 300,000 per year up to 8 years