You are charged with choosing a vendor to produce a new software that is going to benefit your company. The project has a life cycle of 8 years and MARR of 8% annual interest. Part a.) Draw the cash flow diagram for each vendor. Part b.) Calculate a PW cost for each vendor. Part c.) Indicate which vendor you would choose. Task Development Programming Operation Support Vendor M Cost, $ 200,000 150,000 42,000 20,000 40,000 30,000 Time Frame Now Years 1-4 Now Years 1-3 Years 1-8 Years 1-8 Vendor N Cost, $ 70,000 60,000 45,000 50,000 35,000 Time Frame Now Now Years 1-5 Years 1-8 Years 1-8 Vendor O Time Frame Cost, $ 150,000 Years 1-8

PW values of a project were calculated for several values of (i). The results were plotted as shown in the figure. a. What are the values of ROR (i*) for this project? Put 100 integer number followed immediately by% 75 1- 50 25 2- 10 20 30 40 50 b. If this project is a public sector project (i.e. its ROR is low). What value should we choose as the ROR for the 50 project? Put integer number followed immediately 75 by% 100 (O00TS x) Md

A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a one-day tour. Records show $360,000 in fixed costs per season, incremental costs of $5 per customer, and an average daily occupancy of 80%. The number of days of operation necessary each season to break even is closest to which value? (a) 50 days (b) 75 days (c) 100 days (d) 120 days?

What Term goes with what Concept