please solve on page

Q1135 points} A manufacturing company is considering replacement options for one of its outdated productit equipment. It can eiier purchase new machineryto make the parts needed or purchase the parts from a supplie MARK is 10% per year compounded annually. Alternative 1 [Buy new machinery] New machinery will cost a total of $1 .3 million initially, have an annu 0&M cost of $210,0tli and a market value of 5] 50,000 in ti years. The existing production equipment will I traded in for a total of$225.t}. Alternative 1 [Purchase parts} Purchasing parts needed will cost $3E. per year. In addition, this optic will require some warehousing operations, which is expected to cost $90,009 per year. Ifie purchasing optic is chosen. the existing production equipment will be sold for its market value of$ lllJlDtl. a] [18 points) Compute the AW of Alternative 1 for a planning horizon of 15 years. h} {14 points} Compute the AW of Alternative 2 for a planning horizon of' years. c] [3 points} Based on an AW comparison. what is your recommendation