A dairy processing company is planning to install a new homogenizer, and there are two alternatives.

The first alternative has an installed cost of $$50,000.$ It has a service life of $10$ years with a salvage value of $$2,000.$ The annual operating cost $($excluding depreciation$)$ for this homogenizer is estimated as $$5,000.$

The second alternative has an installed cost of $$60,000,$ and the service life is $10$ years with a salvage of $$3,000.$ The annual operating cost $($excluding depreciation$)$ of this alternative is $$2,500.$

It is estimated that each alternative will provide the same rate of production. income tax rate is $35\%,$ and depreciation is taken as $10-$years straight$-$line in each case. If the acceptable rate of return is $15\%,$ which of the alternatives should be selected?