delightful climate forecasters (dcf) are planning to contract for a suite of new office equipment (printers, computers, etc.). dcf is considering two proposals that each involve substantial startup costs and annual maintenance costs. proposal a costs more up front but is a 5-year arrangement. project b costs less up front, but costs more each year and will have to be renewed after 4 years. what is the equivalent annual cost of proposal a? dcf is using a discount rate of 8%. year proposal a proposal b 0 -$85,000 -$70,000 1 -$8,000 -$10,000 2 -$10,000 -$12,000 3 -$12,000 -$14,000 4 -$14,000 -$16,000 5 -$16,000
