Q.4(25 pts) Time of the question 12.15-12.40 A quarry outside of Austin, Texas wishes to evaluate two similar pieces of equipmentby which the company can meet new state environmental requirements fordust emissions. The MARR is 10% per year. Equipment X has an initial cost of $(a), and a life of 5 years, estimated value after 3 years of $20,000. Equipment Y has an initial cost of $ (b), and a life expectancy of 7 years, estimated value after 3 years of $26,00, . The annual operating cost (AOC) forEquipment Xis expected to be $15,000, while the AOC for Equipment Y is expected to be $10,000. If thesalvage values are $ (C) and $ (d) for Equipment X and Equipment Y, respectively, determine which alternative is economically better using (A) the AW method, and (B) AW method with a 3-year study period. a. (70,000-71,000) (90,000-91,000) (15,000-16,000) (10,000-10,500) 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Arithmetic Gradients Single Payments F/P P/F Compound Present Amount Worth A/F Sinking Fund Uniform Series Payments F/A A/P Compound Capital Amount Recovery P/A Present Worth PG Gradient Present Worth A/G Gradient Uniform Series n 1 2 3 4 5 6 7 1.1000 1.2100 1.3310 14641 1.6105 1.7716 1.9487 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 1.00000 0.47619 0.30211 0.21547 0.16380 0.12961 0,10541 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 1.10000 0.57619 0.40211 0.31547 0.26380 O2061 0.20541 0.9091 1.7355 2.4869 3.1699 3.7908 4.3583 4.8684 0.8264 2.3291 4.3781 6.8018 9.0842 12.7631 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 Q.4(25 pts) Time of the question 12.15-12.40 A quarry outside of Austin, Texas wishes to evaluate two similar pieces of equipmentby which the company can meet new state environmental requirements fordust emissions. The MARR is 10% per year. Equipment X has an initial cost of $(a), and a life of 5 years, estimated value after 3 years of $20,000. Equipment Y has an initial cost of $ (b), and a life expectancy of 7 years, estimated value after 3 years of $26,00, . The annual operating cost (AOC) forEquipment Xis expected to be $15,000, while the AOC for Equipment Y is expected to be $10,000. If thesalvage values are $ (C) and $ (d) for Equipment X and Equipment Y, respectively, determine which alternative is economically better using (A) the AW method, and (B) AW method with a 3-year study period. a. (70,000-71,000) (90,000-91,000) (15,000-16,000) (10,000-10,500) 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Arithmetic Gradients Single Payments F/P P/F Compound Present Amount Worth A/F Sinking Fund Uniform Series Payments F/A A/P Compound Capital Amount Recovery P/A Present Worth PG Gradient Present Worth A/G Gradient Uniform Series n 1 2 3 4 5 6 7 1.1000 1.2100 1.3310 14641 1.6105 1.7716 1.9487 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 1.00000 0.47619 0.30211 0.21547 0.16380 0.12961 0,10541 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 1.10000 0.57619 0.40211 0.31547 0.26380 O2061 0.20541 0.9091 1.7355 2.4869 3.1699 3.7908 4.3583 4.8684 0.8264 2.3291 4.3781 6.8018 9.0842 12.7631 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216