Question: 2. Consider the following estimates Alternative 1 Alternative 2 First cost -40,000 -65,000 Annual cost -20.000 -15.000 Salvage value 10,000 Life in years 3 4

2. Consider the following estimates

Alternative 1

Alternative 2

First cost

-40,000

-65,000

Annual cost

-20.000

-15.000

Salvage value

10,000

Life in years

3

4

Apply the present worth analysis to determine the best alternative.

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