1. You have been asked to evaluate two alternatives, A and B, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 8% per year? Why is yours the correct choice B Alternative First cost, $ Maintenance cost, $/year Salvage value, $ Life, years . -45,000 - 8,000 2,000 5 -58,000 -4,000 12,000 5