A company is evaluating two alternatives to produce a new product. The initial cost of Alt Alpha is $-160,000, with an annualmaintenance and operations cost of $-40,000, and final salvage value at the end of year 2 of $10,000. The initial cost of AltTimore is $-500,000, with an annual maintenance and operations cost of $-10,000, and final salvage value at the end of year4 of $33,000. Assume a MARR of 19% per year.Calculate the present worth of each alternative.The present worth for Alt Alpha is $The present worth for Alt Timore is $Select

To calculate the present value of each alternative, we need to find the present value of the initial cost, annual maintenance and operations cost, and salvage value for each alternative. We'll use the given Minimum Attractive Rate of Return (MARR) 19% per year for discounting.Let's calculate the present worth of each alternative:Alt Alpha:Initial cost: $−160,000Annual maintenance and operations cost: $−40,000 per year for 2 yearsSalvage value at the end of year 2:$10,000. To calculate the present worth of each alternative, we can use the present worth formula:PW=−160,000+(−40,000/(1+0.19))+(10,000/(1+0.19)2)PW=−160000−33613.44+7061.64PW=−186551.8Alt Timore:Initial cost: $−500,000Annual maintenance and operations cost: $−10,000 per year for 4 yearsSalvage value at the end of year 4:$33,000PW=−500,000+(−10,000/(1+0.19))+(−10,000/(1+0.19)2)+(−10,000/(1+0.19)3)+(33,000/(1+0.19)4)PW=−500000−8403.36−7061.64−5934.36+16458.85PW=−504940.51The present worth for Alt Alpha is −186551.8.The present worth for Alt Alpha is −504940.51.