3. The alternatives described below are equipment's that all perform the same function more- or-less equally satisfactorily. Using rate of return analysis, determine which alternative is the most economical. The equipment's are anticipated to be used for 4 years and MARR is 12% per year. (20 points) Alternative 1 Alternative 2 Alternative 3 Alternative 4 195,000 325,000 250,000 750,000 350,000 225,000 300,000 45,000 Initial cost ($) Annual operating cost ($) Salvage value, ($) (after 4 years of service) 0 100,000 0 150,000 A municipality is evaluating two sites for bringing fresh water. At the east site, recharge basins could be used. They will cost $3 million to construct and $100,000 per year to operate and maintain. At this site, 400,000 cubic meters of water per year could be injected. The north site will cost $1,000,000 to develop injection cells. The annual O&M cost will be $27,000 but at this site only 160,000 cubic meters of water per year could be injected. If the value of injected water is $1.40 per cubic meter, which alternative, if either should be selected according to the conventional B/C method. Use a 30-year study period and an interest rate of 9% per year. (20 points)