Consider the Three Mutually Exclusive Alternatives Below

Consider the three mutually exclusive alternatives below. At the end of their useful lives, alternatives X and Z will be replaced with identical replacements so that a 10- year service requirement is met. If the MARR is 3% per year, which alternative (if any) should be chosen? $$\begin{array} { | l | l | l | l | } \hline \text { Alternative } & X & Y & Z \\\hline \text { Capital Investment } & \$ 300,000 & \$ 425,000 & \$ 500,000 \\\hline \text { Annual savings } & \$ 68,750 & \$ 108,750 & \$ 188,750 \\\hline \text { Salvage value } & \$ 90,000 & \$ 125,000 & \$ 140,000 \\\hline \text { Life, years } & 10 & 20 & 5 \\\hline\end{array}$$