A plastic-manufacturing company owns and operates a polypropylene-production facility that converts the propylene from one of its cracking facilities to polypropylene plastics for outside sale. The polypropylene-production facility is currently forced to operate at less than capacity due to lack of enough propylene-production capacity in its hydrocarbon-cracking facility. The chemical engineers are considering alternatives for supplying additional propylene to the polypropylcne-production facility. Some of the feasible alternatives arc as follows: Build a pipeline to the nearest outside supply source. Provide additional propylene by truck from an outside source. The engineers also gathered the following projected cost estimates: Future costs for purchased propylene, excluding delivery: $0.215 per lb Cost of pipeline construction: $200,000 per pipeline mile Estimated length of pipeline: 180 miles Transportation costs by tank truck: $0.05 per lb. using a common carrier Pipeline operating costs: $0,005 per lb. excluding capital costs Projected additional propylene needs: 180 million lbs per year Projected project life: 20 years Estimated salvage value of the pipeline: 8% of the installed costs Determine the propylene cost per pound under each option if the firm's MARR is 18%. Which option is more economical