An engineer is considering the replacement of a 10-year-old special-purpose pump. The pump is used to provide 14,000 gallons per minute of a liquid having specific gravity of 1.35 at 12 feet total dynamic head. The existing pump now has a salvage value of $5,000 and operates at 70% efficiency. If this unit is retained for 2 more years, it will be sold for $2,000 and replaced by a new pump at a cost, including installation, of $20,000. It is estimated that the new unit, which will be installed at the end of 2 years, will operate with an efficiency of 85% and will have a service life of 10 years with $5,000 salvage value at the end of that time. require that the old pump be replaced immediately by either of the following pumps:

Pump B

Initial cost: $15,000

Installation cost: $1,500

Service life: 15 years

Salvage value $4,500

Efficiency 80%

Pump C

Initial cost: $24,000

Installation cost: $1,500

Service life: 14 years

Salvage value: $4,000

Efficiency: 88%

Maintenance costs are assumed to be the same for all alternatives, and power is available at $0.08 per kilowatt-hour. Operation will be 24 hours per day for 300 days per year. For a MARR of 15%, which alternative should be selected?

[Note: Energy consumption in kilowatt-hours-head in feet gal/min specific gravity number of hours 0.746(3,960 efficiency).]

*Solve using annual equivalent worth (AE)**

If answer is correct I will rate, thank you

*solve using annual equivalent worth. (AE)