Do this problem using a calculator. Do not use Excel or Matlab. Show all your steps. Your company is considering upgrading an existing distillation column. Two quotes have been received from

two different vendors as follows Item Quotation 1 55,000 75000 Condenser Reboiler Reflux Pump Reflux Drum 12500 Piping 8000 Valves 6500 Expected life, years 10 Operating expenses (electricity, water, maintenance etc.) 7500 Quotation 2 75000 75000 10500 14500 8000 6500 15 20000 14000 The capital can be borrowed for a nominal interest rate of 10.77 % per annum compounded monthly. 1. What is the Net Present Cost of upgrading for Quotation 1? Enter in the Answer Box below. 2. What is the Net Present Cost of upgrading for Quotation 2? 3. Based on your answers above can you determine which choice is the least costly choice? Why or why not? Explain. 4. Which option do you recommend and justify with calculations. Hint: Use EAC method.