18,19 and 20

Answer questions 18 through 20 based on the following statement The university is considering two alternatives to develop a small source of renewable energy. The details of the cash flows of each of these alternatives are summarized below: Alternative Initial cost, $ Annual operating cost, $ Cost of renovation, $ One time upgrading cost, $ Alpha 20M 1.6M 2.5M every 17 years 3.2M at the end of Year 22 Beta 26M 1.2M 3.5M every 20 years If the interest rate is(8% per year and based on infinite analysis period: 18. The capitalized cost for the Alternative Alpha is closest to a. $39.92M b. $ 41.51M c. $ 30.71M d. $ 42.62M 19. The cost for Alternative Beta is closest to a. $ 42.65M b. $ 35.96M c. $ 34.57M d. $ 41.96M 20. The most economical alternative is a. Alternative Alpha b. Alternative Beta c. Both d. None Answer questions 21 through 23 based on the following statement The two alternatives shown below are to be compared using an interest rate of 10% per year