2) Two alternatives are being considered to perform a given job. Both of these alternatives provide equal service. The cost data for each alternative is provided in the tables below. Assume the salvage value of alternative one is $200,000 after 1 year of use and the salvage value for alternative two is $300,000 after 2 years of use. Alternative 1 Alternative 2 Initial Cost 400,000 300,000 50,000 Salvage Value 60,000 Life, years 4 5 Annual cost of operation and 10,000 10,000 maintenance 20 Required return 20 Use a conventional cost comparison approach and determine: (a) An equivalent annual cost comparison assuming infinite service need. Which one do you choose? Why? (b) A capitalized cost comparison assuming infinite service need. Which one do you choose? Why? (c) A present worth cost comparison assuming infinite service need. Which one do you choose? Why? (d) An equivalent annual cost comparison assuming a service life of 20 years. Which one do you choose? Why? (e) An equivalent annual cost comparison assuming a service life of 17 years. Which one do you choose? Why