Lobo is a leading manufacturer of positronic brains, a key component in robots. The company is...

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Finance

Lobo is a leading manufacturer of positronic brains, a keycomponent in robots. The company is considering two alternativeproduction methods. The costs and lives associated with eachare:
Year Method 1 Method 2
0 $ 6,700 $ 9,900
1 400 620
2 400 620
3 400 620
4 620
Assuming that Lobo will not replace the equipment when it wearsout, what is the present value of both methods (r = 13%)? Ignoredepreciation and taxes in answering. (Negative amountsshould be indicated by a minus sign. Do not round intermediatecalculations. Round your answers to 2 decimal places.)
Present value
  Method 1 $
  Method 2 $
Based on present value, which method should Lobo buy?
Method 1
Method 2
If Lobo is going to replace the equipment, what is the presentvalue of both methods (r = 13%)? Ignore depreciation and taxes inanswering. (Negative amounts should beindicated by a minus sign. Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)
Present value
  Method 1 $
  Method 2 $
Based on present value, which method should Lobo buy?
Method 1
Method 2

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Lobo is a leading manufacturer of positronic brains, a keycomponent in robots. The company is considering two alternativeproduction methods. The costs and lives associated with eachare:YearMethod 1Method 20$6,700$9,9001400620240062034006204620Assuming that Lobo will not replace the equipment when it wearsout, what is the present value of both methods (r = 13%)? Ignoredepreciation and taxes in answering. (Negative amountsshould be indicated by a minus sign. Do not round intermediatecalculations. Round your answers to 2 decimal places.)Present value Method 1$ Method 2$ Based on present value, which method should Lobo buy?Method 1Method 2If Lobo is going to replace the equipment, what is the presentvalue of both methods (r = 13%)? Ignore depreciation and taxes inanswering. (Negative amounts should beindicated by a minus sign. Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)Present value Method 1$ Method 2$ Based on present value, which method should Lobo buy?Method 1Method 2