Explain clearly

The Smooth Paving Company must purchase a compactor to meet the growing demands for road construction and resurfacing. The key parameters of the three compactors under scrutiny are provided below. Parameters Alpha Beta Gamma 1. Initial Cost ($) 120,000 180,000 225,000 $140,000 at EOY1 increasing by $5,000 annually to $146, 100 at $250,000 at EOY3 EOY1 EOY1 2 2. Revenues ($) (=$150,000); increasing by increasing by thereafter 1% annually to 1% annually to decreasing by EOY10 EOY5 $20,000 annually to EOY5 (=$110,000) $97,000 at EOY1 117,000 at $173,000 at EOY1 EOY1 3. Operating Costs decreasing annually by $500 decreasing by increasing by ($) to EOY5 1% annually to 3% annually to EOY10 EOY5 4. End-of-life 5,000 0 salvage value ($) ($20,000) 5. Useful life (years) 5 years 10 years 5 years All parameter values are fictitious. . EOY = End-of-year Industry Standard = 2.5 years MARR = 10% ($) = Negative dollar amount11 . The best of the three compactors based on the simple payback decision criterion. 12. The best of the three compactors based on the discounted payback decision criterion. 13. Alpha's benefit/cost (B/C) ratio. 14. Beta's benefit/cost (B/C) ratio