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What is the yearly cost savings that Widgets, Inc. obtains by gluing widgets compared to welding them? 4.) Consider the following alternatives in the table

What is the yearly cost savings that Widgets, Inc. obtains by gluing widgets compared to welding them?

4.) Consider the following alternatives in the table below. <25 pts>

Alternative

A

B

Initial Cost

$900

$2,500

Uniform Annual Benefit

$220

$800

Useful Life (years)

20

10

The analysis period is 20 years, but there will be no replacement for Alternative B after 10 years. Based on a 6% interest rate and an annual cash flow analysis, state the equivalent uniform annual worth of each alternative. Also state which alternative is best to be selected and why

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