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5. (8 points) A company is considering two mutually exclusive alternatives (i = 8%): Initial Cost Annual Maintenance Cost Annual Savings if implemented Salvage value

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5. (8 points) A company is considering two mutually exclusive alternatives (i = 8%): Initial Cost Annual Maintenance Cost Annual Savings if implemented Salvage value Useful life of alternative Alternative A $10000 2800 5500 2500 Alternative B $20000 2200 7000 5000 4 years 8 years What is the NPW of alternative A if we choose 8 years as the analysis period (assuming identical replacements)

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