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4. The Deadeye Distillery is opening a new production facility at Sweetwater Springs. Two types of stills are being considered and the following cost estimates

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4. The Deadeye Distillery is opening a new production facility at Sweetwater Springs. Two types of stills are being considered and the following cost estimates have been developed: Alternative First cost Useful life Salvage value Maintenance costs: First year Increase each additional year Sourmasher $10,000 4 years $0 Cornsqueezer $15,000 6 years $2,000 $800 $200 $1,000 $400 Assuming that all other operational costs are equal, compare the present worth of the alternatives using a before-tax interest rate of 25%

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