An engineer has received two bids for an elevator to be installed in a new building. The bids, plus his evaluation of the elevators, are shown in Table P5-69. The engineer will make a present worth analysis using a 10% interest rate. Prepare the analysis and determine which bid should be accepted.

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Engineer's Estimates Bids: Installed Cost Annual Operating Cost, Including Repairs Salvage Value at End Service Life (years) of Service Life Alternatives 10 IS Westinghome $45.000 $3000 4500 S2700/yr Itis 2850/yr 54,000