A construction company needs to buy a crane for a twelve year project. The purchasing officer is looking at two available short-listed alternatives: Komatsu F1, costs $1.5M and will last 6 years and then will be sold for $400k. The company will buy another F1, six years from today for $1.5M, which will last another 6 years and will be sold for $400k and the end of its useful life. Caterpillar X12, must be purchased for $1.1M and will last for four years and then will be sold for $350k. The company is planning to buy another X12 four years from today at the same original price of $1.1M and sell it eight years from today for $350k. The third X12 will be purchased at the same price once the second one is retired. The salvage value of the third crane will be exactly the same as the other two. Assume a MARR of 9% and using the present worth analysis, find the best alternative. Don't forget to draw the cash flow diagram for this problem. (10 marks) A construction company needs to buy a crane for a twelve year project. The purchasing officer is looking at two available short-listed alternatives: Komatsu F1, costs $1.5M and will last 6 years and then will be sold for $400k. The company will buy another F1, six years from today for $1.5M, which will last another 6 years and will be sold for $400k and the end of its useful life. Caterpillar X12, must be purchased for $1.1M and will last for four years and then will be sold for $350k. The company is planning to buy another X12 four years from today at the same original price of $1.1M and sell it eight years from today for $350k. The third X12 will be purchased at the same price once the second one is retired. The salvage value of the third crane will be exactly the same as the other two. Assume a MARR of 9% and using the present worth analysis, find the best alternative. Don't forget to draw the cash flow diagram for this problem. (10 marks)