A local government in Virginia is considering three different alternatives for a sewage

treatment plant. The type of equipment and technology needed are quite different in each case.

The following summarizes the economic data for all the alternatives.

The localitys cost of funds is 9%. The economic life of the project is 30 years.

Use conventional benefit-cost analysis and incremental analysis to determine which alternative

should be recommended. Note that doing nothing is not an alternative

please show all work on paper please. NO EXCEL

Equipment costs O &M costs/year Annual benefits Alt. A 4,350,000 450,000 640,000 Alt. B 5,600,000 600,000 1,000,000 Alt. C 6,500,000 750,000 1,300,000