You have been asked to evaluate two alternatives, X and Y, that may increase plant capacityfor manufacturing high-pressure hydraulic hoses. The parameters associated with eachalternative have been estimated. Which one should be selected on the basis of a present worthcomparison at an interest rate of 12% per year? Why is yours the correct choice?

Alternative X Y

First Cost$ -45,000 -95,000

Maintenance cost,(per Year)$ -12000 -4000

Salvage Value$ 4,500 10,500

Life 5 years 5 years

The present worth of alternative X is ____$and that of alternative Y is_____ $.