Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $ 10,000 per year. Alternative A is to keep the existing auger, which has a current market value of $ 12,500. It will have a $0 salvage value after 7 more years. Alternative B is to buy a new auger that will cost $ 50,000 and will have a $ 15,000 salvage value after 7 years. O&M costs are $ 4,500 for the new auger. Clear Water can trade in the existing auger on the new one for $15,000. Alternative is to trade in the existing auger on a "treated auger" that requires vastly less O&M cost at only $3,250 per year. It costs $ 78,000, and the trade-in allowance for the existing auger is $ 18,000. The "treated auger" will have an $18,000 salvage value after 7 years. Alternative D is to sell the existing auger on the open market and to contract with a current competitor to use their equipment and services to perform the drilling that would normally be done with the existing auger. The competitor requires a beginning-of-year retainer payment of $ 8,000. End-of-year O&M cost would be $ 6,000. MARR is 15%, and the planning horizon is 7 years. Click here to access the TVM Factor Table Calculator Parta Clearly show the cash flow profile for each alternative using a cash flow approach (insider's viewpoint approach). EOY Alternative A Alternative B Alternative C Alternative D $ $ $ $ 1 $ $ $ $ $ $ $ GA A $ N 3 $ $ GA $ $ 4 $ $ $ $ 5 $ GA $ $ 6 $ $ GA $ 7 $ GA $ $