Chapter 10, Problem 029 A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $40,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $110,000 with $3,000 salvage value after 16 years. Operation and maintenance for each is expected to be $20,500 and $16,500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 3%. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table