1. The local police department is considering two types of sidearms for its officers. The Glock 40 costs $400 apiece and has a life of 4 years. The other option is a Sauer 45 that costs $800 and has a 12-year life. The Sauer pistol has a residual value of $200 at the end of its 12-year service life. Determine the better choice using the PW method and a study period of 8 years. The department uses a MARR of 5%.
2. Three different methods can be used for recovering by-product heavy metals from a manufacturing sites liquid waste. The investment costs and incomes associated with each method are shown below. Assuming all methods have a 10-year life and the companys MARR is 10% per year, determine which method should be selected using Annual Worth Analysis.

3. 	Method 1	Method 2	Method 3
   First Cost, $	20,000	18,000	25,000
   Salvage Value, $	1,000	3,000	1,500
   Annual Income, $	5,000	5,000	7,000