The expected life of the Alpha washer is 3 years, while the Beta washer has a life expectancy of 6 years. The initial cost and the net cash inflows are Alpha Beta Cost 10000 18000 Net Cash Inflows for Years 1 8000 8000 2 8000 8000 3 8000 8000 Replacement Cost 12000 4 8000 8000 5 8000 8000 6 8000 8000 At the end of year 3, the Alpha washer could be replaced with a similar model for another 3 years, though the expected cost is forecasted to be $12,000 at that time. Assume the cash flows will remain at $8,000 annually for year 4-6 if an Alpha replacement washer is purchased at the end of year 3. Determine which washer should be purchased The cost of capital of the MCU Inn 10% ANSWER Alpha Beta Discount Factor (formula) (formula) (number) Initial Cost Net Cash Inflows 1 2 3 T) in (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) ) (formula) (formula) (formula) 5 6 Present Value 1 2 3 4 5 6 6 NPV Nt Alpha Beta (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) (formula) Which one should Liu Ming Chuan purchase? Please answer Alpha or Beta