A company wishes to move in to a new product line that requires material removal machining. The product contains some toxic materials that are water soluble. The company uses 10% as their MARR. There are two alternatives to consider: Alternative One: Buy a machine for $100,000 Maintenance is expected to be $10,000 per year Revenue is expected to be $20,000 per year at $100 per unit and a sales of 2,000 units for each of the first five years Starting in the sixth year, sales are expected to be 3,000 units per year There is a major maintenance cost at 10 years of $15,000 The life of the machine is expected to be 15 years and should be worth no more than $10,000 at year 15 Alternative Two: Outsource the product for the first five years to see if it is a viable product The product can be bought from a vendor for $50 a unit Sales of 2,000 units per year is expected. From year six on sales are expected to grow to 3,000 units per year At year five, buy a larger machine for $150,000 Maintenance is expected to be $5,000 per year The life of the machine is expected to be 20 years, but should be worth no more than $10,000 at year 15 Create the cash flow diagram for each alternative. What assumptions need to be made? What is the present worth for each alternative over the 15 years? What is the annual worth for each alternative over the 15 years? Set the problem up using nomenclature equations and solve. Make a recommendation considering economic and non-economic factors. (Please be clear with hand- writing)