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 $$45,000$ with $$3,500$ salvage value after $16$ years. The other can be purchased and installed for $$95,000$

with $$3,000$ salvage value after $16$ years. Operation and maintenance for each is expected to be $$21,500$ and $$14,000$ per year,

respectively. The granary uses MACRS$-$GDS depreciation, has a marginal tax rate of $40\%,$ and has a MARR of $9\%$ after taxes. Determine which alternative is less costly$,$ based upon comparison of after$-$tax annual worth.

how the AW values used to make your decision: