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Question 3 0 cut of 5 points Precision Manufacturing is considering the purchase of a machine for $500,000. Albernatively, the machine could be leased on

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Question 3 0 cut of 5 points Precision Manufacturing is considering the purchase of a machine for $500,000. Albernatively, the machine could be leased on a five-yearcontract for $125,000 per year. Payments will be made at the beginning of each year. If the company purchases the machine, maintenance costs will be $25,000 per year. The savage value of the machine in five years' time is expected to be $70,000, Which alte, ative should be recommended based on the present worth method? Use MARR of 10 % Queston Correct Match Selected Match Present Worth of Buying Decision: A-551312 None Giver hel Present Worth of Lease Decision F-521250 None Given G. 43,463 Present worth of salvage value None Given B. Lease Decision: Buy or Lease ? None Given Federal Electricity &Water Authority (FEWA) has two renewal energy alternatives are available for providing energy at a remote government research facility. The cash flow estimates associated with each alternative are given below. Use the conventional B-C ratio method, with Annual Worth as the equivalent-worth measure, to determine which alternative should be selected at an interest rate of 10% per year over a 25-year study period. One alternative must be selected. Alternative II Alternative I $990,000 $1,000,000 Initial cost, $ Annual maintenance costs, $/yr $380,000 $359,500 Annual benefits, $/yr $500,000 $459,500 $17,000 $15,800 Salvage value, $ Question Correct Match Selected Match t Benefit Cost ratio for Alternative 1: A 1.02 (None Given) Benefit Cost ratio for Alternative II: B. 1.06 (None Given) C.0.231 Incremental Benefit Cost Ratio INone Given Pad Aternative selected D. Nternativel None Givenl

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