1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%