X= 200000

Y= 400000

Z= 5

W= 8

P= 15

2) A technology company is planning to purchase one of two chips. Due to the pace of technological change in this area, it is realistic to assume that these are one-shot investments. The expected cash flows for each machine are shown below. MARR is P % per year. Which alternative is preferred (use FW analysis) Alternative 1 Alternative 2 SRX SR Y Initial investment Z years W years Expected life Salvage Value SR 35,000 0 Annual Income SR 60,000 SR 85,000 SR 30,000 SR 15,000 Annual Expense