1. A company is considering two alternatives for expanding its international export capacity. Option requires cquipment purchases of $900,000 now and $580,000 two years from now, with annual M&O costs of $79,000 in years 1 through 10. Option 2 involves subcontracting some of the production at costs of $280,000 per year beginning now through the end of year 10. Neither option will have a significant salvage value. Use a present worth analysis to determine which option is more attractive at the company's MARR of 15% per year. 2. Estimates for two projects are shown below. Which should be selected on an economic basis of present worth values at an interest rate of 12% per year? Project A First cost, 205.000 -235.000 Maintenance Sys 29.000 27.000 Salvage values 2.000 20.000 3. Compare two alternatives, A and B. on the basis of a present worth evaluation using i -10% per year and a study period of 8 years. Alternate Fotost, 15.000-2.000 Antal operating cost your 6,000,000 Overhin year 4,5 3000 Salvage values 3.000.000 + 4. An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $40,000, an annual operating cost (AOC) of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an AOC of S6000 over its 4-year service life. Method C costs $130,000 initially with an AOC of $4000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform a future worth analyses to select the method at an MARR of 12% per year. 5. A city is to build a new football stadium that will cost $220 million Annual maintenance is expected to amount to $750,000 The grass will have to be replaced every 10 years at a cost of $950,000. If the city expects to maintain the facility indefinitely what is the estimated capitalized cost at i=9% per year