where D8 is equal to 4

Question 4 An American multinational company is now considering two mutually exclusive alternatives for the environmental protection equipment at its manufacturing plant in the United Kingdom. One of these alternatives must be selected. The estimated cash flows for each alternative are listed in the below table. Alternative A Alternative B Capital investment Annual expenses Market value at end of useful life Useful life (20,000 + D8 x 1,000) (5,500 + D8 x 1,000) (1,000+ D8 x 1,000) 5 years (38,000 + D8 x 1,000) (4,000 + D8 x 1,000) (4,200 + D8 x 1,000) 10 years Assume that the equipment will be needed indefinitely and the firm's MARR relative to British pound (GBP) is 20% per year. (b) Suppose the study period is shortened to five years. (i) If the market value of Alternative B after five years is estimated to be (15,000 + D8 x 100), which alternative would you recommend? Use 4 decimal places of the compound interest factors to do your calculation. Show detailed steps of your analysis. (Correct your final answer to 2 decimal places.) (3 marks) (ii) Assuming the market value of Alternative B after five years is (35,000 + D8 x 1,000), which alternative would you recommend? Use 4 decimal places of the compound interest factors to do your calculation. Show detailed steps of your analysis. (Correct your final answer to 2 decimal places.)