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Problem 9 (20 points) A client asks you to evaluate 4 pieces of equipment (A, B, C, and D) based on a benefit-cost analysis.

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Problem 9 (20 points) A client asks you to evaluate 4 pieces of equipment (A, B, C, and D) based on a benefit-cost analysis. Using a MARR of 5.6% (note you will need to use linear interpolation to determine factors from tables-do not use an average value) and a life span of 12 years for all options, determine the most cost-effective solution based on the following data: A B C D Initial Cost Annual maintenance cost Additional $110,000 $82,000 $70,000 $60,000 $18,000 $14,000 $11,500 $13,000 maintenance cost at $45,000 $25,000 $18,000 $32,000 year 8 Annual benefit from $50,000 $30,000 $20,000 $27,000 production Salvage Value $61,000 $43,000 $19,000 $24,000

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