(20 points total) Question 19: A company is deciding to replace major piece of machinery. Four potential alternatives have been identified. The cost and benefit information for these alternatives are shown below. Assume 18% interest and determine the following: (Estimated Response Time for Average Student: 12 minutes) Item Machine 1 Machine 2 Machine 3 Machine 4 First Cost $12,000 $25,999 $52,734 $31,956 Uniform Annual Benefit $29,672 $32,750 $35,821 $33,149 Salvage Value $1,750 $5,000 $17,500 $13,250 Useful Life in Years 1 1.67 5 2.5 (10 points) 19 (a). What is the most appropriate Analysis Period? a. 5 years b. 1 years for Machine 1; 1 years for Machine 2; 5 years for Machine 3; and 2.5 years for Machine 4 c. The average of the useful lives of the different alternatives, in this case, 2.54 years d. 1 years (5 points) 19 (b). Which Alternative has the highest Net Salvage Value in today's dollars? a. Machine 1 b. Machine 2 c. Machine 3 d. Machine 4 (5 points) 19 (c). Based solely on financial considerations, which is the best alternative (Hint: NPV)? a. Machine 1 b. Machine 2 c. Machine 3 d. Machine 4