Economics A university is considering installing electric valves with automatic timers on some of their irrigation systems. They estimate that 45 valves and timers would be needed at a cost of $85 per set. Initial installation costs are estimated at $2,000. Currently there are 4 employees in charge of maintaining the meadows. Each of these employees earns $2,200 per year. If the automatic system is installed, the labor costs would be reduced by 80% and the water bill by 35%. However, additional maintenance on the automatic system is estimated to cost $450 per year. If the useful life of the valves and timers is 8 years, what system should be used if the interest rate is 16% per year? Use the present worth method