The Smooth Paving Company must purchase a compactor to meet the growing demands for road construction and resurfacing. The key parameters of the three compactors under scrutiny are provided below. Parameters Alpha Beta Gamma 1. Initial Cost ($) 120,000 180,000 225,000 $140,000 at EOY1 increasing by $5,000 annually to $146,100 at $250,000 at EOY3 EOY1 EOY1 2. Revenues ($) (=$150,000); increasing by increasing by thereafter 1% annually to 1% annually to decreasing by EOY10 EOY5 $20,000 annually to EOY5 (=$110,000) 117,000 at $97,000 at EOY1 $173,000 at EOY1 EOY1 decreasing 3. Operating Costs decreasing by increasing by ($) annually by $500 1% annually to 3% annually to to EOY5 EOY10 EOY5 4. End-of-life 5,000 0 salvage value ($) ($20,000) 5. Useful life (years) 5 years 10 years 5 years All parameter values are fictitious. EOY = End-of-year Industry Standard = 2.5 years MARR = 10% ($) = Negative dollar amount . . 1. Beta's net worth (Net Future Worth) at EOY10. 2. Alpha's net present worth (at EOYO). 3. Gamma's annual equivalent worth (AEW). Beta's AEW. 4. 5. The best of the three compactors based on the AEW decision criterion. 6. The best of the three compactors based on the NPW decision criterion. 7. Gamma's recovery period (years) based on the simple payback decision criterion 8. Alpha's "project balance" after three (3) years based on the simple payback decision criterion. Beta's recovery period (years) based on the discounted payback decision criterion. 9. 10. 11. Alpha's recovery period (years) based on the discounted payback decision criterion The best of the three compactors based on the simple payback decision criterion. The best of the three compactors based on the discounted payback decision criterion. 12. 13. Alpha's benefit/cost (B/C) ratio. 14. Beta's benefit/cost (B/C) ratio. 15. Two-part question: i) Based on the incremental B/C ratio, is the Alpha compactor better than the Gamma compactor? ii) Does your answer to part i) of this question coincide with your conclusion as to the better of the Alpha and Gamma compactors based on the NPW decision criterion? Answer options are a) Yes, Yes; b) Yes, No; c) No, Yes; d) No, No