A city is considering the development of a recreational complex. Two plans are under consideration:

Under plan 1, building will have to be refurbished at a cost of $60,000 every 15 years and facilities have to be refurbished at a cost of $100,000 every 10 years.

Under plan 2, building will have to be refurbished every 25 years and facilities every 10 years at a cost equal to origional cost of construction.

Considering "infinite life", which alternative should be selected based on

a) Present worth analysis (interest = 10%)

b) Annual cash flow analysis (interest = 10%)

	Plan 1	Plan 2
Land development (life permanent)	$125,000	$125,000
Buildings (life permanent)	$125,000	$175,000
Recreational Facilities (life permanent)	$100,000	$100,000
Annual maintenance	$12,000	$4,000

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION