10.Matt Appleton Construction Inc. needs additional small overhead crane to improve material handling and safety requirement in their design lab area. They are considering two popular models: Air left K95, CMF 1034. The local bank offering for a new loan 4% every 6 months and MARR is 12% The financial data for each model are given:

Air Lift K95 - Initial Cost $20,000 - Useful Life 6 years - Salvage Value $2,000 - Annual Operating Cost $8,000

CMF 1034 - Initial Cost $29,000 - Useful Life 7 years - Salvage Value $4,000 - Annual Operating Cost $4,000

a. Which model is more economical for Matt Appleton Construction Inc?

b. List four important assumptions of your recommendations?