A public utility district (PUD) has retained your services to provide a perpetual water service to a small resort community: Option 1 Option 2 $150,000 25 Pipe First Cost Expected Life, years Salvage Value (S) Pump First Cost Expected Life, years $235,000 45 23,500 15,000 100,000 10 125,000 15 10,000 1,000 Pump House First Cost Expected Life, years 15,000 50 20,000 50 0 0 Energy (Annual) Costs First Year Gradient 50,000 1,000 increasing 20,000 1,000 decreasing 5,000 15,000 600 200 System Operation (Annual) First Year Gradient System Maintenance (Annual) First Year Gradient 10,000 25,000 1,000 400 Energy costs are expected to follow according to time in service of the pump; in other words, energy expenditures will repeat with each new pump installation. Sys- tem O&M expenses will increase perpetually. Given that the MARR (i*) value is 9%, which option should be selected