Question 2: (10 points) Consider the following information for two project alternatives. Initial Investment (RO) Annual Expenditure (RO) Market (Salvage) Value Useful Life (Year) Alternative A 60,000 7,500 0 4 Alternative B 140,000 6,000 20,000 10 a) (5 Points) Identify the best project out of alternatives A and B using the repeatability assumption. b) (5 Points) Now assume that the study period is 6 years. At the end of the useful life, a new machine can be leased for 8,000 RO per year until the end of the study period. Compare the alternatives using the ERR method (MARR 10%, E = 8%). Question 2: (10 points) Consider the following information for two project alternatives. Initial Investment (RO) Annual Expenditure (RO) Market (Salvage) Value Useful Life (Year) Alternative A 60,000 7,500 0 4 Alternative B 140,000 6,000 20,000 10 a) (5 Points) Identify the best project out of alternatives A and B using the repeatability assumption. b) (5 Points) Now assume that the study period is 6 years. At the end of the useful life, a new machine can be leased for 8,000 RO per year until the end of the study period. Compare the alternatives using the ERR method (MARR 10%, E = 8%)