Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, andT_e= 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.

Alt x: First cost is -8000, salvage value at year 4 is 0, gi-oe $ is 3500 and recovery paid in years 3

Alt y: -13000, salvage value is 2000,gi-oe5000,and recovery paid in years 3