Giant Corporation is considering a major equipment purchase is being considered. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10%. Briefly discuss. a. Calculate the payback period for this equipment purchase. b. Calculate the discounted payback period c. Calculate the Benefits Cost ratio d. Calculate the NFW of this investment Problem 2: Below are four mutually exclusive alternatives given in the table below. Assume a life of 7 years and a MARR of 9%. Alt. A Alt. B Alt. C Initial Cost $5,600 EUAB $1,400 Salvage Value $400 $3,400 $1,000 $0 $1,200 $400 $0 Alt. D - Do Nothing $0 $0 $0 a. The AB /AC ratio for the first increment, (C-D) is how much? b. The AB /AC ratio for the second increment, (B-C) is how much? c. The AB /AC ratio for the third increment, (A-B) is how much? d. The best alternative using B/C ratio analysis is which one and why?