Perform a presentworth (PW)-based evaluation of the two alternatives below using aspreadsheet. The after-tax minimum acceptable rate of return (MARR)is 8% per year, Modified Accelerated Cost Recovery System (MACRS)depreciation applies, and Te = 40%. The (GI -OE) estimate is made for the first 3 years; it is zero in year 4when each asset is sold.
| Alternative | X | Y |
| First Cost, $ | –8,000 | –13,000 |
| Salvage Value,Year 4, $ | 0 | 2,000 |
| GI-OE, $ perYear | 3,500 | 5,000 |
| Recovery Period,Years | 3 | 3 |
The PW for alternativeX is determined to be____ $ .
The PW for alternativeY is determined to be____ $ .
Alternative (Click toselect)XY is selected.
