DO NOT USE EXCEL

A construction company is considering procuring one of two types of heavy construction equipment (A and B). Each type of equipment is expected to have a 5-year useful life with zero salvage value. A can be purchased at a cost of $30,000, while B would cost $55,000. The net cash flows for each type of equipment are given below. Year A B 0 -$30.000 $55,000 1 6,000 24,000 2 6,000 10,000 3 12,000 21,000 4 6,000 -7,000 5 25,564 26,610 a. Using the conventional payback period approach, determine which alternative the company should purchase. b. Using the Future Worth analysis, determine which alternative the company should select