X= 250000

Y= 450000

Z= 6

W= 10

P= 20

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 2% per year. Which alternative is preferred (use FW analysis) Alternative 1 SRX Alternative 2 SRY Initial investment Expected life Z years SR 35,000 W years 0 Salvage Value Annual Income SR 60,000 Annual SR 30,000 Expense SR 85,000 SR 15,000