n engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan 1 requires the leasing of quipment for $60,000 initially and will cost between $0.40 and $0.95 per metric ton to operate, with a most likely cost of $0.50 per letric ton. The pumper can pump 100 metric tons per 8-hour day. If leased, the asset will have a contract period of 5 years. Plan 2 is a ental option that will cost $20,000 per year. In addition, an extra $18.5 per hour labor cost will be incurred for operating the rented quipment per 8-hour day. Which plan should the engineer recommend if the equipment will be needed for 85 days per year? The IARR is 13% per year. he annual worth of plan 1 lease optimistic is \$ he annual worth of plan 1 most likely is \$ he annual worth of plan 1 pessimistic is \$ he annual worth of plan 2 rental is \$ Ian 1 lease optimistic is than rental of plan 2 . Ian 1 most likely is than rental of plan 2 . |an 1 lease pessimistic is than rental of plan 2