Engineering economy.

Problem 1: (50 points) Annual expenses for two alternatives have been estimated on different bases as follows: Alternative AAlternative B Annual Expenses Annual Expenses Estimated inEstimated in Real End of Year Actual Dollars Dollars with b $120,000 132,000 48,000 160,000 $100,000 110,000 120,000 130,000 4 If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 8% per year, show which alternative has the least negative equivalent worth in the base period