Find EUAC = Equivalent Uniform Annual Cost for both alternatives and determine the best using Excel.

Example 6-10 Analysis Period Alternatives Alt. 1 Alt. 2 Initial Cost $50,000 $75,000 Estimated salvage value at end of useful life $10,000 $12,000 Useful Life 7 years 13 years Estimated market value, end of 10-year $20,000 $15,000