Business, 05.07.2021 20:10 RyanODON

Two alternate plans are available for increasing the capacity of existing water transmission lines between an unlimited source and a reservoir. The unlimited source is at a higher elevation then the reservoir. Plan A calls for the construction of a parallel pipeline and flow by gravity. Plan B specifies construction of a booster pumping station. Estimated cost for the two plans are as follows: Hint: Use Present Worth- (do not guess show all your work) i=10% Plan A : Cost $700,000, Life 40 Years, Annual Operation and Repair $1,000/Year
Plan B: Cost $200,000, Life 40 Years Structure and 20 years equipment, Equipment replacement at the end of 20 years $75,000, Annual Operation and Repairs 52,000/year
a. Plan A $709,779.00
b. Plan A $740,000
c. Plan B $710,165.50
d. Plan B $326,000

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