Please Calculate the Following with the Table Provided.a) Beta’s Annual Equivalent Worth (AEW).b) Alpha’s AEW over 30 years (it was repeated several times without changes to its initial parameter values).c) The best of the three (3) harvesters based on the NFW decision criterion. A cash crop specialist requires more significant harvesting capacity dueto the purchase of an additional 900 acres of farmland.The parameter values of the three harvesters under consideration areprovided below.Parameters1. Initial Cost ($)Alpha300,000Beta350,000200,000 atΕΟΥ1increasing by$500 annuallythereafter by$500 untilEOY5; 206,000at EOY6increasingannuallythereafter by1%113,000 atGamma390,000205,000 atΕΟΥ1235,000 annuallyfrom EOY1 toincreasingannuallythereafter by$5002. Revenues ($)EOY5110,000 atΕΟΥ1increasingannuallythereafter by2%115,000 at EOY1increasingannuallythereafter by 2%ΕΟΥ13. Operating costs($)increasingannuallythereafter by4%4. End-of-lifesalvage value ($)5. Useful life10,000-10,000105(years)• All parameter values are fictitious.• EOY = End-of-yearIndustry standard for harvesters = 4 yearsMARR = 10%

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Principles of Accounting Volume 2

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Chapter11: Capital Budgeting Decisions

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Please Calculate the Following with the Table Provided.

a) Beta’s Annual Equivalent Worth (AEW).

b) Alpha’s AEW over 30 years (it was repeated several times without changes to its initial parameter values).

c) The best of the three (3) harvesters based on the NFW decision criterion.

A cash crop specialist requires more significant harvesting capacity due
to the purchase of an additional 900 acres of farmland.
The parameter values of the three harvesters under consideration are
provided below.
Parameters
1. Initial Cost ($)
Alpha
300,000
Beta
350,000
200,000 at
ΕΟΥ1
increasing by
$500 annually
thereafter by
$500 until
EOY5; 206,000
at EOY6
increasing
annually
thereafter by
1%
113,000 at
Gamma
390,000
205,000 at
ΕΟΥ1
235,000 annually
from EOY1 to
increasing
annually
thereafter by
$500
2. Revenues ($)
EOY5
110,000 at
ΕΟΥ1
increasing
annually
thereafter by
2%
115,000 at EOY1
increasing
annually
thereafter by 2%
ΕΟΥ1
3. Operating costs
($)
increasing
annually
thereafter by
4%
4. End-of-life
salvage value ($)
5. Useful life
10,000
-10,000
10
5
(years)
• All parameter values are fictitious.
• EOY = End-of-year
Industry standard for harvesters = 4 years
MARR = 10%

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