Penny wants to expand her arts and crafts store. She needs to hire a contractor to expand her store Following information are the differences in the guarantees the contractor makes. If i= 20%, find NPW of cost of Contractor B. Note that the maintenance cost occurs at the end of year. Contractor B Initial Cost Yearly Maintenance Cost 70,000 1,000

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Penny wants to expand her arts and crafts store. She needs to hire a contractor to expand her store. The
following information are the differences in the guarantees the contractor makes. If i= 20%, find the
NPW of cost of Contractor B. Note that the maintenance cost occurs at the end of year.
Contractor
B
Initial Cost
Yearly Maintenance
Cost
Useful Life
No correct answer
54542
58825
62849
74192
42010
Initial Cost
Yearly Maintenance
Cost
Useful Life
70,000
1,000
Penny wants to expand her arts and crafts store. She needs to hire a contractor to expand her store. The
following information are the differences in the guarantees the contractor makes. If i= 20%, find the
NPW of cost of Contractor A. Note that the maintenance cost occurs at the end of year.
Contractor
A
42010
54542
62849
58825
74192
No correct answer
10
30,000
4,000
5
Transcribed Image Text:Penny wants to expand her arts and crafts store. She needs to hire a contractor to expand her store. The following information are the differences in the guarantees the contractor makes. If i= 20%, find the NPW of cost of Contractor B. Note that the maintenance cost occurs at the end of year. Contractor B Initial Cost Yearly Maintenance Cost Useful Life No correct answer 54542 58825 62849 74192 42010 Initial Cost Yearly Maintenance Cost Useful Life 70,000 1,000 Penny wants to expand her arts and crafts store. She needs to hire a contractor to expand her store. The following information are the differences in the guarantees the contractor makes. If i= 20%, find the NPW of cost of Contractor A. Note that the maintenance cost occurs at the end of year. Contractor A 42010 54542 62849 58825 74192 No correct answer 10 30,000 4,000 5
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