1. 5.33 A systems engineer is trying to determine which components to include in the sidewalk design of a smart city project that will have robots that roam underground doing routine chores like delivering mail.

Design X will have a first cost of $48,350, M&O costs of $19,500 per year, and an expected useful life of 4 years with no salvage value.

Design Y will be more flexible, so its useful life will be 6 years with M&O costs of $28,600 and a salvage value of $4000. The first cost of Design Y such that its AW is the same as the AW for Design X, at an interest rate of 10% per year, is closest to:

1. $26,484 2. $29,050 3. $33,394 4. $38,575