ECHOIC? Choosethe one alternative that besl complete- the statement or answers the question. ) A company has decided to purchase some new equipment for $550,000. The equipment will be 1) kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be $25,000 Use this inforrmation to solve the following two questions Using the SL method, the annual depreciation on the equipment is: C) 52500 D) 55,000 A) 50,000 2) Using the SL method, the book value at the end of the depreciable life is 2) A) 50,000 C) 35,000 D) 25,000 3) Complete the following analysis of investment alternatives and select the preferred one. The study 3) period is three years and the MARR-15% per year Alternative A Alternative B Alternative C 11,000 4,000 Investment 16,000 13,000 Revenues Annual Costs 250 Market Value at EOY 3 PW(15%) 6,000 500 5,540 400 5,000 2800 577 A) Do nothing B) Alternative B C) Alternative C D) Alternative A Complete the following analysis of cost alternatives and select the preferred one. The study period 4) is 10 years and the MARR-12% per year 18,000 15,000 250 16,000 300 13,000 500 Investment Annual Costs Market Value at EOY 10 2,000 -55,660 1,300 1,750 49,975 -53,658 FW(12%) C) Alternative A D) Alternative C B) Alternative B A) Alternative D 5) and a MARRs 12% and equal investment lives of 4 years, which alternative should the Capital ) A company is considering three mutually exclusive alternatives. Based upon the following table Annual Net InvestmentRevenues Salvage Value select? 1 Alternative RR(%) 2000 4,000 15.800-1 5.200 3,000 IRR(%) 19.2 18 3,000 3,500 1,500 8,000 23 C) Alternative A D) Do Nothing B) Alternative B A) Alternative C