SuperCool, a manufacturer of industrial cooling systems has recently developed a new absorption chiller which uses plain water as a refrigerant and semiconductors that cool down when charged with electricity. This new technology eliminates the traditional chilling technique, which uses chlorofluorocarbons (CFCS) planning to launch the product and is considering three investment alternatives. Relevant data for the three alternatives are given in the table below: a product that damages the earth's ozone layer. The company is Alternative A Alternative B Alternative C Invest Large Invest Medium Invest Small Initial Investment Cost $1,200,000 $800,000 $400,000 Annual Revenue $300,000 $248,000 $200,000 Annual Operation Cost $20,000 $15,000 $10,000 9 years 6 years 3 years Useful Life $600,000 $300,000 $40,000 Market value at EoY 3 $300,000 $80,000 Market value at EoY 6 $120,000 Market value at EoY 9 The company's MARR is 10%. If the study period is 9 years, which alternative should be chosen? State the main assumptions made. (4 marks) (a) (4 marks) (b) If the study period is 6 years, which alternative should be chosen? State the main assumptions (c) Do you expect the best alternative chosen in (a) and (b) to be always the same? Explain your 40% made. (1 mark) answers.