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2. [45 points] A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan

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2. [45 points] A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan will save $900,000 annually but their cost is different. The benefits will last for 25 years. Based on a benefit-cost analysis what should the agency do, if i= 10%? Plans A B C D Initial Cost $7,000,000 $7,500,000 $6,500,000 $8,000,000 Annual O&M $90,000 $120,000 $130,000 $40,000

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