The parameters of this question are on the sheet below.
We have determine that the best option using the equivalent annuity method is the Large.
Because we fouand that: The Annual Worth of small =$19,112.45
The Annual Worth of Medium =$26,667.4
The Annual Worth of Large =$27,413
Now, Assume that the planning period is 5 years, what assumptions should be made for the Small and Medium models to ensure that their equivalent annuities calculated before remain true!! In other words, calculate the recovery values of the Small model and medium model to year 5. Since the useful life of the Grand model is already 5 years, you do not have to perform any further calculations for this model. Support your response with calculations that are done in your discussion paper.
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