Question: 2. (15 points) For the alternatives show below, only one can be chosen. The first cost, annual revenue, and salvage value are estimated. If the

2. (15 points) For the alternatives show below, only one can be chosen. The first cost, annual revenue, and salvage value are estimated. If the MARR is 15% per year, determine which alternative should be selected based on a. Present worth analysis. b. Incremental rate of return. Calculate by hand or use spreadsheet. First Cost, $ Maintenance & Operations, $/year Revenue, $/year Salvage Value, $ Life Option A -40,000 -12,000 6,000 20,000 3 Option B -95,000 -5,000 11,000 47,000 6
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