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D K L B E F. G . J 4. Two alternatives are being considered as a solution to an engineering problem. The alternatives are

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D K L B E F. G . J 4. Two alternatives are being considered as a solution to an engineering problem. The alternatives are different in design but have identical capacities and can both meet the technical requirements of the problem. Thus only costs and salvage values are being considered in the decision. These are shown below. The company's before-tax MARR is 15% and the planning horizon is 6 years. Which machine 1 should be selected based on least cost before-tax? (12 points) 2 3 Option A Option B 4. Initial Cost ($) 12,000 13,000 5 Annual Costs ($) 4,500 4,000 6 Market Value (year 7) ($). 2,000 2,500 7 8 This problem MUST be done using the functions in Excel. 9 10 11 12 13 14 15 16

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