A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $45,000with $3,500salvage value after 16 years. The other can be purchased and installed for $95,000with $3,000salvage value after 16 years. Operation and maintenance for each is expected to be $21,500and $14,000per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has aMARRof 9% after taxes.

Show the AW values used to make your decision:

Conveyor 1:

Conveyor 2: