Answer questions 17 through 19 based on the following statement The university is considering two alternatives to develop a small source of renewable energy. The details of the cash flows of each of these alternatives are summarized below: Alternative Alpha Beta Initial cost, S 20M 26M Annual operating cost, $ 1.6M 1.2M Cost of renovation, $ 2.5M every 17 years 3.5M every 20 years One time upgrading cost, $ 3.2M at the end of Year 22 If the interest rate is 8% per year and based on infinite analysis period: 17. The capitalized cost for the Alterative Alpha is closest to a. $39.92M b. $ 41.51M c. $ 30.71M d. $ 42.62M 18. The cost for Alternative Beta is closest to a. $ 42.65M b. $ 35.96M c. $ 34.57M d. $ 41.96M 19. The most economical alternative is a. Alternative Alpha b. Alternative Beta c. Both d. None Answer questions 20 through 23 based on the following statement A company is planning to purchase a heavy machine which is expected to increase their a by $95,000. The machine will cost $500,000 and the company believes it can sell for $105,000 at the end of its 15-year service life. Since the company cannot afford to pay for it fully, it plans to make a down payment of 20% of the cost and to take a 10-year loan on the remaining cost to be paid annually at 10% interest rate. The maintenance and operating costs are estimated to be $4,500 in the first year but expected to increase by $1,500 each year after that. The company's MARR is 12% per year. 20. The down payment value is: a. $100,000 b. $87,500 c. $400,000 d. $125,000