A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $22,500. The instrument will be used for 6 years and be worth $1,250at that time. The annual cost of use and maintenance will be $11,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $25,500, with use and maintenance costs of only $7,000and salvage value after 6 years of $2,500. The marginal tax rate is 25%, andMARRis an after-tax 12%.

Show the AW values used to make your decision:

Alternative 1:

Alternative 2: