A contractor has been awarded the contract to construct a six miles long tunnel in the mountain of western Wisconsin. During the five year period, the contractor will need water from the nearby stream. He will construct a pipe line to convey the water to the main construction yard. An analysis of the various pipe sizes is as follows: Pipe sizes 2" 3" 4" 6" Installed cost of pipeline and pump $22000 $23000 $25000 $30000 Cost per hour for pumping $1.20 0.65 0.50 0.40 The pipe and the pump will have a salvage value at the end of five years equal to the cost to remove them. The pump will operate 2000 hours per year. The lowest rate at which the contractor is willing to invest is 7%. Select the best Pipe using Annual Worth