answer 5-42, the highlighted question

5- A man had to have the muffler replaced on his 2-year-old car. The repairman offered two alternatives. For $250 he would install a muffler guaranteed for 2 years. But for $400 he would install a muffler 41 guaranteed "for as long as you own the car." Assuming the present owner expects to keep the car for about 3 more years, which muffler would you advise him to have installed if you thought 10% was a suitable interest rate and the less expensive muffler would only last 2 years? 5- North City must choose between two new snow-removal machines. The SuperBlower has a $70,000 first cost, a 20-year life, and an $8000 salvage value. At the end of 9 years, it will need a major overhaul 42 costing $19,000. Annual maintenance and operating costs are $9000. The Sno-Mover will cost $50,000, has an expected life of 10 years, and has no salvage value. The annual maintenance and operating costs A are expected to be $12,000. Using a 12% interest rate, which machine should be chosen? 5- A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with a salvage value of $25,000 after its 2-year life. Process B will have a first 43 cost of $250,000, an operating cost of $15,000 per quarter, and a $40,000 salvage value after its 4-year life. The interest rate is 8% per year compounded quarterly. What is the present value difference between A and B