Please find the present worth of Alternative A, the present worth of Alternative B in Millions and which alternative should be undertaken.

An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. ' Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of $30 million would be required, and it is estimated that this plant facility would be in service for 25 years and have a salvage value of $0.35 million. The annual operating and maintenance costs (including income taxes) would be $0.3 million. ' Alternative B. Spend $15 million now and follow this expenditure with future additions during the 10th year and the 15th year. These additions would cost $19 million and $11 million, respectively. The facility would be sold 25 years from now with a salvage value of$150 million. The annual operating and maintenance costs [including income taxes] will be 0250.000 initially and will increase to $0.35 million after the second addition [from the 11th yearto the 15th year] and to $0.45 million during the nal 10 years. (Assume that these costs begin one year subsequent to the actual addition.) On the basis of the presentworth criterion, ifthe rm uses 11% as a MARR, which alternative should be undertaken? Note: Adopt incremental cost approach. Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor N (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.1100 0.9009 1.0000 1.0000 0.9009 1.1100 1.2321 0.8116 2.1100 0.4739 1.7125 0.5839 1.3676 CAWN - 0.7312 3.3421 0.2992 2.4437 0.4092 1.5181 0.6587 4.7097 0.2123 3.1024 0.3223 1.6851 0.5935 6.2278 0.1606 3.6959 0.2706 1.8704 0.5346 7.9129 0.1264 4.2305 0.2364 2.0762 0.4817 9.7833 0.1022 4.7122 0.2122 2.3045 0.4339 11.8594 0.0843 5.1461 0.1943 2.5580 0.3909 14.1640 0.0706 5.5370 0.1806 10 2.8394 0.3522 16.7220 0.0598 5.8892 0.1698 11 3.1518 0.3173 19.5614 0.0511 6.2065 0. 1611 12 3.4985 0.2858 22.7132 0.0440 6.4924 0.1540 13 3.8833 0.2575 26.2116 0.0382 6.7499 0.1482 14 4.3104 0.2320 30.0949 0.0332 6.9819 0.1432 15 4.7846 0.2090 34.4054 0.0291 7.1909 0. 1391 16 5.3109 0.1883 39.1899 0.0255 7.3792 0.1355 17 5.8951 0.1696 44.5008 0.0225 7.5488 0.1325 18 6.5436 0.1528 50.3959 0.0198 7.7016 0.1298 19 7.2633 0.1377 56.9395 0.0176 7.8393 0.1276 20 8.0623 0.1240 64.2028 0.0156 7.9633 0.1256\fAn electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years. and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. ' Alternative A. Increase the generating capacity now so that the ultimate demand can loe met without additional expenditures later. An investment of $30 The present worth of Alternative. is $- million. [Round to one decimal place.)