Potable water is in short supply in many developing countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in a developing country. Doing nothing is not an option. The MARR is 8% per year. Answer the following questions: a. Calculate the net AW of each system over the service life. b. Calculate the modified B/C ratio for each of the two systems. c. Use the B/C ratio method to determine which system is more economical. Initial Capital Annual Revenues Annual Costs Service life (years) Salvage value System 1 System 2 $150,000 $260,000 $83,000 $36,000 10 $57,200 $50,000 $23.000 10 $18,000 a. The net AW of System 1 is $ The net AW of System 2 is $ (Round to the nearest dollar.) (Round to the nearest dollar.) Therefore, based on the AW method, System b. The modified B/C ratio for System 1 is The modified B/C ratio for System 2 is is more economical. (Round to two decimal places.) (Round to two decimal places.) c. The incremental B/C ratio is (Round to two decimal places.) Therefore, based on the B/C ratio method, System is more economical.