A large refinery and petrochemical complex is planning to manufacture caustic soda, which will use 10.000 gallons of feed water per day. Two types of feed-water storage installation are being considered to serve over 40 years of useful life: Option 1: Build a 20.000-gallon tank on a tower. The cost of installing the tank and tower is estimated to be $164,000. The salvage value is estimated to be negligible. Option 2: Place a 20,000-gallon tank of equal capacity on a hill that is 150 yards away from the refinery. The cost of installing the tank on the hill, including the extra length of service lines, is estimated to be $120,000 with negligible salvage value. Because of its hill location, an additional investment of $12,000 in pumping equipment is required. The pumping equipment is expected to have a service life of 20 years with a salvage value of $1,000 at the end of that time. The annual operating and maintenance cost (including any income-tax effects) for the pumping operation is estimated at $1,000. If the firm's MARR is known to be 12%, which option is better, calculated on the basis of the present-worth criterion? At an interest rate of 12%, compare the net present worth of each option over eight years