$(4)$ A firm needs to expand its manufacturing capacity. The present facility could be expanded to meet the needs at a cost of $$1\mathrm{.}5$ million. Waste treatment costs for the expanded facility would be about $$150,000$ per year. An entirely new facility that would reduce waste production could be built for approximately $$2\mathrm{.}95$ million. The new facility would have an estimated annual waste treatment cost of $$52,000.$ Assume a $20-$year useful life for the facilities and a zero salvage value for both. If the prevailing interest rate is $10$ percent, which alternative is preferable?