The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as shown in the table. Assume that the MARR is 10% per year, the study period is six years, and the market value is zero for all three designs. Apply an equivalent-worth analysis method to determine the preferred alternative.

The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as shown in the table. Assume that the MARR is 10% per year, the study period is six years, and the market value is zero for all three designs. Apply an equivalent-worth analysis method to determine the preferred alternative. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment). (Round to the nearest hundreds.) Alternative Inc. PW Is the alternative acceptable? EOY ER1 Design ER2 - $105,000 28,000 0 1 - $98,500 25,000 ER3 - $81,200 19,500 2 3 G= $1506 f=6% 4 5 6 33,456 28,750 19,500 After year one, the annual savings are estimated to increase at the rate of 6% per year. "After year one, the annual savings are estimated to increase $150 per year. Uniform sequence of annual savings