Two mutually exclusive projects are being considered:

Project Uno has a first cost of $12,500, creates $5000 in annual savings, and has a salvage value of $2000 at the end of its 4 years useful life.

Project Dos has a first cost of $25,000, creates $8000 in annual savings, and has a salvage value of $4000 at the end of its 8 years useful life.

The MARR is 10% per year. At the end of useful life, both projects can be replaced identically.

Which of the following set of equations will solve for the NPW that allows you to make decision based on NPW analysis.

1.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = [-25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)]/2

2.
Uno: PW = -12,500 + 5000(P/A, 10%, 16) + (2000-12,500)(P/F, 10%, 4) + (2000-12,500)(P/F, 10%, 8) + (2000-12,500)(P/F, 10%, 12) + 2000(P/F, 10%, 16)
Dos: PW = -25,000 + 8000(P/A, 10%, 16) + (4000-25,000)(P/F, 10%, 8) + 4000(P/F, 10%, 16)

3.
Uno: PW = 2[-12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)]
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

4.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 4) + (4000/2)(P/F, 10%, 4)

5.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

6.
Uno: PW = -12,500 + 5000(P/A, 10%, 8) + 2000(P/F, 10%, 8)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

7.
Uno: PW = -12,500 + 5000(P/A, 10%, 8) + (2000-12,500)(P/F, 10%, 4) + 2000(P/F, 10%, 8)
Dos: PW = -25,000 + 8000(P/A, 10%, 8) + 4000(P/F, 10%, 8)

8.
Uno: PW = -12,500 + 5000(P/A, 10%, 4) + 2000(P/F, 10%, 4)
Dos: PW = -25,000 + 8000(P/A, 10%, 4) + 4000(P/F, 10%, 4)