RTCE Stamping Corp. is a major steel stamping company in the Southen region of Canada. The company is looking to buy a new high-speed press to increase its production capacity. The company received two quotes from two different manufacturers: Offer 1 ( from a USA manufacturere) and Offer 2 ( from a Korean manufacturer). The minimum Acceptable Rate of Return (MARR) for TCE Stamping Co. is 9%. Answer the following questions using the information in the table below.

	Offer 1	Offer 2
Selling price	$1,000,000	$1,150,000
Shipment and Installation cost	$50,000	$75,000
Maintenance cost	$8,000 for the first year, increasing by 1,000 per year thereafter	$7,000 for the first year, increasing by 800 per year thereafter
Annual operating cost	$8,500	$7,500
Salvage value	$210,000	$300,000
Service Life	15 years	20 years

a) Which offer is better, based on Annual Worth comparison?

b) Which offer is better, based on Future Worth comparison?

c) Do both metods (Annual Worth and future Worth) always lead to same result?

d) For a fifteen-year study period, what salvage value for the press in offer 2 would make it a better choice?

e) State the assumption made to compare mutually exclusive alternatives of different lives?