Use Present warth Analysis to determine which alternative should be chosen 228% Alta # Drama cest Show work! 15 First cost OSM costs Annual Reverwe Salvage Valve Useful life (18,000 $450, increasing ressyr $5,000 lyr $4,000 5 years Alt 2 $ 20,000 $7001gr 45,500 eur $5,000 5 years Use present worth analysis to determine which alternative should be chosen = 8% I Alt. A Alt. B First cost $18000 $20000 O&M Costs $450, increasing $25/yr $5000/yr $700/yr $5500/yr Annual revenue Salvage Value $4000 $5000 Useful life 5 years 5 years Draw CFDs