Two competing companies have submitted bids to develop a new video display technology. The yearly development cost of Alpha expressed in actual dollars will be $150,000 the first year and increase by 5% per year over the five year contract. Beta has proposed a development cost, expressed in constant dollars, of $150,000 per year over the five year period. If the corporate MARR (investment at market rate) is 25% and the general price inflation is assumed to be 3.5% over the next five years, what is the NPW of Beta minus the NPW of Alpha?
a.$4,727
b.$7,672
c.$10,773
d.$8,554
Please show how to do in Excel with steps