Question $9$

Two equipment options are being considered for automating a welding process in a construction project, and the details for each option are provided in the table below.$$

Option #$1$:

$$ First cost, $: $-250,000$

$$ Annual Operating Cost, $ per year: $-60,000$

$$ Salvage Calue, $: $70,000$

$$ Life, Years: $3$

$$

Option #$2$:

$$ First cost, $: $-430,000$

$$ Annual Operating Cost, $ per year: $-40,000$

$$ Salvage Calue, $: $95,000$

$$ Life, Years: $6$

$$

a$)$ Determine which equipment alternative should be selected based on a present worth analysis, assuming that each option is repurchased as needed until their useful lives end in the same year. Use a minimum attractive rate of return $($MARR$)$ of $10\%.$

b$)$In part a$,$ you analyzed a real$-$world construction scenario by choosing the best option between alternatives based on theoretical financial analysis. Now, think of a similar situation that could arise in a real construction project. How would you approach solving it outside of an academic context, considering non$-$financial factors that may impact your decision? Feel free to choose any relevant scenario from the construction industry.