In a company's renovation of a small office building, two feasible alternatives for 162, upgrading the heating, ventilation, and air conditioning (HVAC) system have been identified. One of these alternatives must be implemented. The relevant costs are: Items Alternative A Alternative B Equipment, labor and materials to upgrade Tkl 8,000 Tk60,000 Annual cost of electricity 32,000 9,000 Annual maintenance expenses 2,400 16,000 Replacement of a major component 4 years hence - 9,400 Estimated market value at the end of 8 years 2,000 8,000 i. Use a cash flow table and end-of-year convention to tabulate the net cash flows for both alternatives from year zero to year 8. ii. Determine the annual net cash flow difference between the alternatives, that is (B A). iii. Compute the cumulative differences, (B - A), from years zero through eight. iv. Show the cash-flow diagrams for both alternatives. v. What is meant by feasible alternatives?

In a company's renovation of a small office building, two feasible alternatives for 163 upgrading the heating, ventilation, and air conditioning (HVAC) system have been identified. One of these alternatives must be implemented. The relevant costs are: Items Alternative A Alternative B Equipment, labor and materials Tk18,000 Tk60,000 to upgrade Annual cost of electricity 32,000 9,000 Annual maintenance expenses 2,400 16,000 Replacement of a major 9,400 component 4 years hence Estimated market value at the 2,000 8,000 end of 8 years i. Use a cash flow table and end-of-year convention to tabulate the net cash flows for both alternatives from year zero to year 8. ii. Determine the annual net cash flow difference between the alternatives, that is (B-A). iii. Compute the cumulative differences, (B - A), from years zero through eight. iv. Show the cash-flow diagrams for both alternatives. V. What is meant by feasible alternatives