Question # 2: (12 Marks) Consider these two alternatives for solid-waste removal: Alternative A: Build a solid-waste processing facility. Financial variables are as follows: Capital Investment Annual operating expenses Estimated market value Expected useful life $ 108 million $ 3.46 million 40% of initial capital cost. 10 years Alternative B: Contract with dealers for solid-waste disposal after treatment process. Financial variables are as follows: Capital Investment Annual operating expenses Repairs costs Annual fee to dealers Estimated market value Expected contract period $ 17 million this is for treatment process $ 2.10 million $ 3.0 million every five years $10.3 million $0 20 years a) Using the Declining-Balance (DB) method for depreciation, determine the ratio of the depreciation, R of Alternative A b) Which alternative is recommended? Take MARR = 10%. State all your assumptions. c) How much annual operating expense could Alternative A be in order to break even with Alternative B? d) To which factor Alternative B is more sensitive, annual operating expenses, repair costs, or annual fee? Explain Question # 2: (12 Marks) Consider these two alternatives for solid-waste removal: Alternative A: Build a solid-waste processing facility. Financial variables are as follows: Capital Investment Annual operating expenses Estimated market value Expected useful life $ 108 million $ 3.46 million 40% of initial capital cost. 10 years Alternative B: Contract with dealers for solid-waste disposal after treatment process. Financial variables are as follows: Capital Investment Annual operating expenses Repairs costs Annual fee to dealers Estimated market value Expected contract period $ 17 million this is for treatment process $ 2.10 million $ 3.0 million every five years $10.3 million $0 20 years a) Using the Declining-Balance (DB) method for depreciation, determine the ratio of the depreciation, R of Alternative A b) Which alternative is recommended? Take MARR = 10%. State all your assumptions. c) How much annual operating expense could Alternative A be in order to break even with Alternative B? d) To which factor Alternative B is more sensitive, annual operating expenses, repair costs, or annual fee? Explain