The accounting department is involved in a little wager. The accountants believe that an engineer cannot correctly determine which alternative should be chosen using equivalent uniform annual cash flow analysis. As a means of proving this statement, the accountants have provided you with the following data. The accounting department has chosen Alternative A. Calculate the equivalent uniform annual cash flow of each alternative using a MARR of 12%. State whether or not you agree with the accounting department.

Please answer using ex. (P/A, i, n) formulas, Thank you.

Data Alt. A Alt. B

Useful Life, Years 9 10

First Cost (FC) $121,000 $137,000

Annual Benefit (AB) $63,000 $83,000

M&O Gradient (M&OG) $2,900 $4,000

M&O (M&O) $23,000 $32,000