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$-35,000$-65,000Maintenance cost, per Year$-10000$-4000Salvage Value$2,000$3,000Life5 years5 years

present worth of alternative x and y ?