Question 2 A company is planning to install a new automated plastic-molding press. Four different presses are available. The initial capital investments and annual expenses for these four mutually exclusive alternatives are as follows: Press P1 P2 P3 P4 Capital investment $24,000 $30,400 $49,600 $52,000 Useful life (years) 5 5 5 5 Annual expenses Power 2,720 2,720 4,800 5,040 Labor 26,400 24,000 16,800 14,800 Maintenance 1,600 1,800 2,600 2,000 Property taxes & insurance 480 608 992 1,040 Total annual expenses $31,200 $29,128 $25,192 $22,880 Assume that each press has the same output capacity and has no market value at the end of its useful life; the selected analysis period is five years. Which press should be chosen? Use MARR = 20% per year.