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ELABARY Group must buy a robot to place electronic components to the printed circuit boards it assembles in TV. The proposed equipment has a 10-year file with no scrap value. The supplier has given ELABARY several purchase alternatives.

1) The first A1 is to purchase the equipment for 12,750,000 LE.

2) The second A2 is to pay for the equipment in 10 equal installments of 2,025,000 LE each, starting one year from now.

3) The third A3 is to pay 3,000,000 LE now and 1,425,000 LE at the end of each year for the next 10 years.

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