A civil engineer is asked to select a new scraper for his construction form. he collects data from two equipment manufacturers and the data are shown in the table below
Extracted text: Cost or Disbursements Scraper 1 Scraper 2 $1,600,000 S120 per hour $1,200,000 S150 per hour 2,000 hours $20,000 years 6 through 9 $270,000 at year 5 S200,000 10 Initial cost Cost to operate per hour Number of hours used per year 2,000 hours Repairs Major overhaul Salvage value Life in years $15,000 years 6 through 9 $200,000 at year 5 $260,000 12 a) Draw the cash flow diagrams for each of the scarper. b) Determine which scraper he should recommend based on equivalent uniform annual worth analysis using an interest rate of 8%.