Two alternatives are being considered for recovering Aluminum from garbage.

Alternative 1 has a capital cost of $100,000 and a first-year maintenance cost of $12, 000, with maintenance increasing by $500 per year for each year after the first.

Alternative 2 has a capital cost of $140,000 and a first-year maintenance cost of $4,000, with maintenance increasing by $1000 per year after the first.

Revenues from the sale of aluminum are $20,000 in the first year, increasing $2,000 per year for each year after the first. The life of both alternatives is 10 years. There is no salvage value. The MARR is 4%. Use the present worth analysis to determine which alternative is preferred.

Alternative 1, Alternative 2, or neither alternative is worth considering?