An engineer is choosing between three different alternatives for a machine component he needs to complete his biorefinery. He summarized the pertinent information about these alternatives in the tables below. Assume a study period of 8 years Investment Salvage Useful Alternative Cost Value Life Depreciation Method A 100,000 25,000 8 Sum of the Years B 70,000 20,000 4 Straight Line Declining 76,000 5,000 6 Balance Assuming a MARR of 8%, evaluate alternatives B and C and recommend which between the two alternatives the engineer should invest in using the AW method. 11. What is the AW of Alternative B? 1825.86 12. Which between the two alternatives would you recommend using the AW method? C The table below shows the projected net cash flows for each of the alternatives. Alternative A Alternative B Alternative C 1 30,000 -20,000 30,000 2 40,000 40,000 30,000 3 50,000 50,000 30,000 4 60,000 8,000 30,000 5 70,000 30,000 6 80,000 30,000 7 90,000 8 100,000 Note: Please take note or a screenshot of the information presented here, this will be the basis of the succeeding questions. You will not be able to go back to this page.