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Can this be worked out with steps please A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay
Can this be worked out with steps please
A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $433,000 with annual operating and maintenance costs of $58,000 for the next 13 years: design B calls for an investment of $321000 with annual operating and maintenance costs of $95,000 per year for the next 13 years. Fee collections from the residents would again be $85,000 per year. The interest rate is 6%, and no salvage value is associated with either system. Using the benefit-cost ratio BC(i), which system should be selected? Which system should be selected? Choose the correct answer below. Design A Design B If a new design (design C), which requires an initial outlay of $357,000 and annual operating and maintenance costs of $76, 500. is proposed, would your answer in part (a) change? Which system should be selected? Choose the correct answer below. Design B Design A Design CStep by Step Solution
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