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. 2. 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 $173,000 at $97,000 at EOY1 1 EOY1 decreasing 3. Operating costs decreasing by increasing by ($) annually by $500 1% annually to to EOY5 3% annually to EOY10 EOY5 4. End-of-life 5,000 0 salvage value ($) ($20,000) 5. Useful life (years) 5 years 10 years 5 years All parameter values are fictitious. EOY = End-of-year Industry Standard = 2.5 years MARR = 10% ($) = Negative dollar amount . 7 11. The best of the three compactors based on the simple payback decision criterion. 12. The best of the three compactors based on the discounted payback decision criterion 13. Alpha's benefit/cost (B/C) ratio. 14. Beta's benefit/cost (B/C) ratio