engineering economy

3. Costs and revenues of 2 alternatives for a machine are given below. The annual discount rate is 25% and the annual inflation rate is 15%. Accordingly, determine which alternative is economically feasible using the present worth method Compound (combined) values of the related parameters should be used in calculations. Alternative-1 Alternative-2 Initial investment cost 350.000 TL 500.000 TL Salvage value 25,000 TL 30,000 TL First year annual operation cost 6.000 TL 8.000 TL Annual increase rate of operation cost %5 (Real) %18 Annual revenue 145,000 TL 130.000 TL Annual change rate or amount of revenues -500 TL -%3 (real) Economic lite 9 year 10 year NOTE: In the rate values given in the questions, all values without "real" expression are "compound (combinedy" values. 3. Costs and revenues of 2 alternatives for a machine are given below. The annual discount rate is 25% and the annual inflation rate is 15%. Accordingly, determine which alternative is economically feasible using the present worth method Compound (combined) values of the related parameters should be used in calculations. Alternative-1 Alternative-2 Initial investment cost 350.000 TL 500.000 TL Salvage value 25,000 TL 30,000 TL First year annual operation cost 6.000 TL 8.000 TL Annual increase rate of operation cost %5 (Real) %18 Annual revenue 145,000 TL 130.000 TL Annual change rate or amount of revenues -500 TL -%3 (real) Economic lite 9 year 10 year NOTE: In the rate values given in the questions, all values without "real" expression are "compound (combinedy" values