In a company's renovation of a small office building, two feasible alternatives for upgrading the heating,...

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In a company's renovation of a small office building, two feasible alternatives for upgrading the heating, ventilation, and air conditioning (HVAC) system have been identified. Either Alternative A or Alternative B must be implemented. The costs, salvage value, project life and MARR are as follows: Initial equipment, labor and materials to rebuild Annual cost of electricity Annual maintenance expense Salvage value Project life MARR Alternative A -$20,000 -$32,000 -$2,600 $2,000 8 12% Alternative B 6) What is the project life for alternative A? 7) What is the project life for alternative B? $ [ 8) What is the present worth of alternative A? $ 9) What is the present worth of alternative B? $ 10) What is the annual worth of alternative A? $ 11) What is the annual worth of alternative B? $ 12) Which project would you select? $ (Click to select) -$60,000 -$10,000 -$16,000 $80,000 8 12% 1) Calculate the net cash flow in year O for Alternative A $ 2) Calculate the net cash flow in year O for Alternative B $ 3) Calculate the net cash flow in year 4 for Alternative A $ 4) Calculate the net cash flow in year 4 for Alternative B $[ 5) What is the interest rate for both alternatives? years % years In a company's renovation of a small office building, two feasible alternatives for upgrading the heating, ventilation, and air conditioning (HVAC) system have been identified. Either Alternative A or Alternative B must be implemented. The costs, salvage value, project life and MARR are as follows: Initial equipment, labor and materials to rebuild Annual cost of electricity Annual maintenance expense Salvage value Project life MARR Alternative A -$20,000 -$32,000 -$2,600 $2,000 8 12% Alternative B 6) What is the project life for alternative A? 7) What is the project life for alternative B? $ [ 8) What is the present worth of alternative A? $ 9) What is the present worth of alternative B? $ 10) What is the annual worth of alternative A? $ 11) What is the annual worth of alternative B? $ 12) Which project would you select? $ (Click to select) -$60,000 -$10,000 -$16,000 $80,000 8 12% 1) Calculate the net cash flow in year O for Alternative A $ 2) Calculate the net cash flow in year O for Alternative B $ 3) Calculate the net cash flow in year 4 for Alternative A $ 4) Calculate the net cash flow in year 4 for Alternative B $[ 5) What is the interest rate for both alternatives? years % years