6:32 D ON99% A small business owner is choosing between two US-made cargo vans of comparable rating. The business owner has a MARR (Minimum Acceptable Rate of Return) of 8% Expected salvage value for both cargo vans at the end of their service lives is $7500. Answer the following questions using the information in the table below. Cargo van A Cargo van B Down payment $11,000 $12,000 Annual Installment $1000 $900 $150 for the first Maintenance cost year, increasing by $110/year thereafter $160 for the first year, increasing by $100/year thereafter Running cost per 53000 $2,800 year Service Life 10 years 12 years 1. State the necessary assumption for comparing mutually exclusive alternatives of different lives 2. Based on Annual Worth comparison, which alternative should be selected? 3. Based on Present Worth comparison, which alternative should be selected? 4. Do both methods (Present Worth and Annual Worth) always yield to the same decision? 5. For a ten-year study period, what salvage value for cargo van B would make it a better choice