solve by hand

Your local brewery needs some new equipment and have narrowed it down to two choices. Each option has a useful life of 5 years with no salvage value. Costs and benefits are shown in the table below. Use an MARR of 12%.

a) Using payback period analysis which equipment would you recommend?

b) Using the benefit-cost ratio which equipment would you recommend?

Year	A	B
0	-$30,000	-$55,000
1	6000	24,000
2	6000	10,000
3	12,000	21,000
4	6000	-7000
5	25,564	26,610