6-52. Compare alternatives A and B with the equivalent worth method of your choice if the MARR is 15%

per year. Which one would you recommend? State all assumptions. (6.5)

A B Capital investment $50,000 $20,000 Operating costs $5,000 at end of year 1 and increasing by $500 per year thereafter

$10,000 at end of year 1 and increasing by $1,000 per year thereafter Overhaul costs $5,000 every 5 years None Life 20 years 10 years Salvage value $10,000 if just overhauled negligible