Question

Problem - Ayeyalina manufacturer we wchool lockers to purchase a new unchpress for mange them the propriate and the changed offering terms and who the Engineering Department has determined that each vender's christianach has 12.00 per year for the years, and $3.00 per year for the last years. Following schender's wespe of 20 years in these year and Vendor A 33,50 Cash time of delivery and 10 year end me of $17.00. Vendor Antelor the right to post the time 35-varmacoch der Ausland maintenance ane-mental cost of $10.30 Vendor Bi Forty mal payments of $1,120 each, with the first installment de pon delivery, Vendor will performs alerende for the rest years at the Vendor cash price of $129.500 eue pon delivery keturing that both Vendor A und will be able to perform the recured year and maintenance, that hava/scout of funds 10%, and the machine will be purchased on January 1, compute the line Click here to states The present value of the cash flows for vender A. (Round Hector values to 3 decimal pemand folders 458.381) The present value of the cash out for this option is The present value of the cash flows for vendor (Hound facer values te decimal places a 3. 1.25122 and answer to deal places) The present value of the cash outflows for this option is The presentate of the cash flows for vender C. (Round lacher values to 3 decimal places os. 1.23124 and Boulevere decolle 128) The present value of the cash flows for the options From which vendor should the press be purchased! The press should be purchased from Click you would like to Shew Work for this question and Que Attempt of used

Answer 1

The present value of the cash flows for Vendor A:
Year	Cash outflow	PV factor at 10%	Discounted cash flow
	a	b	a*b
0	59950	1	59950
0	10390	1	10390
1 to 10	17830	6.14457	109558
Total			179898
The present value of the cash flows for Vendor A=$ 179898
The present value of the cash flows for Vendor B:
First installment due upon delivery-Year 0.
Years will be 0 to 39 = 40 installments
Discount factor for semi-annual period=10%*(6/12)=5%
Discount factor at 5% for year 0 to 39=1+Discount factor at 5% for 1 to 39 years=1+17.01704=18.01704
Year	Cash outflow	Discount factor at 5%	Discounted cash flow
	a	b	a*b
0 to 39	10120	18.01704	182332
The present value of the cash outflows for Vendor B=$ 182332
The present value of the cash flows for Vendor C:
Year	Cash outflow	Discount factor at 10%	Discounted cash flow
	a	b	a*b
0	139500	1	139500
1 to 5	1070	3.79079	4056.14184
6 to 15	2070	3.81529	7897.65597
16 to 20	3070	0.90748	2785.97654
Total			154240
The present value of the cash outflows for Vendor C=$ 154240
The press should purchase from Vendor C Since it has the lowest present value of cash outflows