Problem 3 (3 points). A certain coal stripping operation presently uses three dozers for reclamation work. To reduce costs, three alternatives are being considered for this job in the future: rebuild, purchase new dozers, and contract out. Details for the alternatives are: Description Rebuild Purchase Contract No of Units N/A Initial Cost, $ 360,000|920,000 Annual costs, S: Maintenance 140,000 85,000 Labor 340,000/260,000 650,000 Supplies 58,000 42,000 Life, years 8 Salvage Value, so 120,000 JO If interest rate is 12% per year, which alternative should be selected