$(20$ points total$)$ Question $16$:

A company is deciding to replace major piece of machinery. Four potential alternatives

have been identified. The cost and benefit information for these alternatives are shown

below. Assume $15\%$ interest and determine the following:

$($Estimated Response Time for Average Student: $12$ minutes$)$

$(5$ points$)16($a$).$ What is the most appropriate Analysis Period?

$(5$ points$)16($b$).$ Which Alternative has the highest Net Salvage Value in today's

dollars?

$(5$ points$)16($c$).$ Based solely on financial considerations, which is the best

alternative $($Hint: NPV$)?$