(20 points) Alternatives A and B are being evaluated. The expected rate of return (ROR) is 10%. What alternative is economically superior? $70000 20 years $7000 $60000 15 years Initial cost Life Salvage value Annual costs Year 1-5 Year 6-10 Year 11-15 Year 16-20 Additional cost Year 10 $1000 $1500 $2000 $2000 $2000 $2500 $3500 $5000 (20 points) Alternatives A and B are being evaluated. The expected rate of return (ROR) is 10%. What alternative is economically superior? $70000 20 years $7000 $60000 15 years Initial cost Life Salvage value Annual costs Year 1-5 Year 6-10 Year 11-15 Year 16-20 Additional cost Year 10 $1000 $1500 $2000 $2000 $2000 $2500 $3500 $5000