2 Page of 7 Problem 1 of 4 ( Quinton's refrigerator has just died. He is got two alternatives to choose from as listed in the given table. Quinton earns 6% on his investments compounded annually and he wants to consider a 10-years horizon and he will use present worth analysis to determine the best alternative. First cost Delivery Servicing, first five years Annual energy cost Salvage value Refrigerator A 700 60 100 120 150 Refrigerator B 800 60 100 55 175 a) Draw cash flow diagrams. b) Determine best alternative. Why? c) How much does the better choice saves