QUESTION 1 (30 marks) (a) A construction company is comparing two options for the purchase of equipment. Evaluate the two options using annual worth analysis and advise which to select, assuming a MARR of 7%. [20 marks] Equipment Life (years) Salvage value, Annual First Cost, Operating Cost, 40,000 2,000 60,000 1,000 5 12,000 20,000 Y 7 (b) Repeat the annual worth analysis above based on a 4 year study period. Use the straight line depreciation method to estimate the equipment market value at the end of year 4. [10 marks]