As a supervisor of facilities management department, you consider mobile cranes to be critical equipment. The purchase o of new medium sized, truck mounted crane is being evaluated. The engineering economic estimates on the two best alternatives are as follow:

Alternatives A B Investment (first) cost $272,000 $316,000 Annual costs 28,000 19,300 Useful life 6 9 Market (salvage value) 25,000 40,000