There are two competing alternatives in your textile business. A-type Tufting Machine costs $20,000 and B-Type Tufting Machine costs $10,000. A-type Tufting Machine can result in $17,000 labour savings in the first two years and $10,000 in year three. B-type Tufting Machine can result in $20,000 labour savings in the first two years.

Assume MARR=10%. and find the difference between the net present worth of these two alternatives using infinite planning horizon with project repeatability.

Question 2 options:

a)

Between $31,500 and $32,900

b)

None of the answers are correct

c)

Between $33,500 and $34,900

d)

Between $25,500 and $26,900

e)

Between $21,500 and $22,900

f)

Between $23,500 and $24,900