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 $$90,000$ with $$4,500$ salvage value after $16$ years. The other can be purchased and installed for $$110,000$ with $$2,000$ salvage value after $16$ years. Operation and maintenance for each is expected to be $$21,500$ and $$12,000$ per year, respectively. The granary uses MACRS$-$GDS depreciation, has a marginal tax rate of $40\%,$ and has a MARR of $9\%$ after taxes.

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Part a

Determine which alternative is less costly$,$ based upon comparison of after$-$tax annual worth.

Show the AW values used to make your decision:

Conveyor $1$:$

Conveyor $2$:$