28. Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 10 years and no salvage value. Polisher 1 requires an initial investment of $20,000 and provides annual benefi ts of $4,465. Polisher 2 requires an initial investment of $10,000 and provides annual benefi ts of $1,770. Polisher 3 requires an initial investment of

$15,000 and provides annual benefi ts of $3,580. MARR is 15 percent/year.

a. What is the present worth of each polisher?

b. Which polisher should be recommended?