Problem E Given the following information, answer questions 25 to 30 J. Doe must choose between two different models. The study period considered is 6 years. Model 1 has a life of four years with a first cost of $13,500 and maintenance costs of $1,250 per year in years 2, 3, and 4 (no maintenance costs in year 1). The salvage value for this model can be estimated using the declining-balance depreciation method (d 20% ). Model 2 has a life of three years with a first cost of $15,000 and maintenance costs of $700 per year. Its salvage value can be estimated using the straight-line depreciation method knowing that the salvage value after one year is $13,100. Consider a MARR of 12% 25. What is the salvage value of model 1 at year 3? a) $ 5,530 c) $ 8,640 b)$ 6,912 d) $10.800 26. What is the annual worth of the maintenance costs for model 1 for the study period? a) -$ 807 c) -$ 3.318 b) -$ 1.585 d)-$ 4,258 27. What is the annual worth of the capital costs for model 1 for the study period? a) -$ 2.132 c)-$ 3,451 b) -$ 2,931 d)-$ 4,258 28 What is the salvage value of model 2 at year 3? a) $ 9,300 c) $ 13,100 b) $ 11,200 d) $ 15,000 29. What is the annual worth of the costs for model 2 for the study period? a) -$ 2,749 c)-$ 3.922 b) -$ 3,305 d) -$ 4,189 30. Which of the two models is the best option for J. Doe? a) Model 1 b) Model 2 Problem E Given the following information, answer questions 25 to 30 J. Doe must choose between two different models. The study period considered is 6 years. Model 1 has a life of four years with a first cost of $13,500 and maintenance costs of $1,250 per year in years 2, 3, and 4 (no maintenance costs in year 1). The salvage value for this model can be estimated using the declining-balance depreciation method (d 20% ). Model 2 has a life of three years with a first cost of $15,000 and maintenance costs of $700 per year. Its salvage value can be estimated using the straight-line depreciation method knowing that the salvage value after one year is $13,100. Consider a MARR of 12% 25. What is the salvage value of model 1 at year 3? a) $ 5,530 c) $ 8,640 b)$ 6,912 d) $10.800 26. What is the annual worth of the maintenance costs for model 1 for the study period? a) -$ 807 c) -$ 3.318 b) -$ 1.585 d)-$ 4,258 27. What is the annual worth of the capital costs for model 1 for the study period? a) -$ 2.132 c)-$ 3,451 b) -$ 2,931 d)-$ 4,258 28 What is the salvage value of model 2 at year 3? a) $ 9,300 c) $ 13,100 b) $ 11,200 d) $ 15,000 29. What is the annual worth of the costs for model 2 for the study period? a) -$ 2,749 c)-$ 3.922 b) -$ 3,305 d) -$ 4,189 30. Which of the two models is the best option for J. Doe? a) Model 1 b) Model 2