A firm is considering three mutually exclusive alternatives as part of a protection improvement programme. The relevant data is as follows:

Item	Alternative A	Alternative B	Alternative C
Machine	10,000	15,000	20,000
Installation cost	2,000	3,000	3,000
Salvage value	1,000	0	2,000
Uniform annual benefit	1,825	1,825	2,090
Useful life (years)	10	20	20

At the end of 10 years, alternative A could be replaced by a copy of itself that has identical cost and benefits. The MARR is 6%.

1. If the analysis period is 20 years, which alternative should be selected?
2. How much can the machine cost increase for the alternative (answer in (a)) still be the first best alternative?

Please show a complete manual calculation calculation not excel and include formula