The following facts are to be used in solving Problems 17-4 through 17.7 in assembling data for the Peabody Company annual capital budget five independent projects are being considered. Detailed examination by the staff has resulted in the identification of three to six mutually exclusive do something alternatives for each project. In addition, each project has a do-nothing alternative. The projects and their alternatives are listed at the top of next page. Each project concerns operations at Peabody's St. Louis brewery. The plant was leased from another firm many years ago, and the lease expires 16 years from now. For this reason, the analysis period for all projects is 16 years. Peabody considers 12%to be the minimum attractive rate of return. In solving the Peabody problems, an important assumption concerns the situation at the end of the useful life of an alternative when the alternative has a useful life less than the 16-year analysis period. Two replacement possibilities are listed. Assumption 1: When an alternative has a useful life less than 16 years, it will be replaced by a new alternative with the same useful life as the original. This may need to occur more than once. The new alternative will have a 12% computed rate of return and, hence, a NPW =0 at 12%. Assumption 2: When an alternative has a useful life less than 16 years, it will be replaced at the end of its useful life by an identical alternative (one with the same cost, uniform annual benefit, useful life, and salvage value as the original alternative).