Use Annual Cost Analysis to determine whether Alternative A or B should be chosen. The analysis period is 5 years. Assume an interest rate of 6% per year, compounded annually Initial Cost 3100 6060 Annual Benet 420 Salvage Value Useful Life (yrs) 0 Alternative A should be chosen, because its initial cost is lower than Alternative 8'5 0 Alternative B should be chosen, because its annual benet is higher than Alternative A's 0 Alternative A should be chosen, because its equivalent annual cost is $361.74 lower than Alternative 8'5 0 Alternative B should be chosen, because its equivalent annual cost is $361.74 higher than Alternative A's The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X X-TRUD SUPR-X Useful Life, Years 17 11 First Cost $2,640,000 $2,840,000 $2,750,000 Salvage Value $122,000 $118,000 $100,000 Annual Benefit $93,000 $533,000 $740,000 M&O $83,000 $80,000 $66,000 M&O Gradient $15,000 $12,000 $9,000 The company's interest rate (MARR) is 3%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $514,033 higher than X and $120,908 higher than X-TRUD. O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $-149,967 higher than X and $-100,092 higher than X-TRUD. O Choosing SUPR-X is best because it has the highest Annual Benefit O Choosing SUPR-X is best because it has the lowest M&O cost in yr1Mary Smith took a car loan of $25,000 to pay back in 60 monthly installments at an interest rate of 6%. Compute the loan balance immediately after the 40th payment. 0 $9,177 0 $6,542 0 $17,483 0 $9,666