Potable water is in short supply in many developing countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in a developing country. Doing nothing is not an option. The MARR is 8% per year. Answer the following questions: a. Calculate the net AW of each system over the service life. b. Calculate the modified B/C ratio for each of the two systems. c. Use the B/C ratio method to determine which system is more economical. Initial Capital Annual Revenues Annual Costs System 1 System 2 $160,000 $260,000 $59,000 $87,000 $23,000 $36,000 Service life (years) Salvage value 10 10 $19,200 $57,200 eloping countries. To address this need, two mutually exclusive water purification systems are bein (Round to the nearest dollar.) (Round to the nearest dollar.) a. The net AW of System 1 is $ The net AW of System 2 is $ Therefore, based on the AW method, System b. The modified B/C ratio for System 1 is The modified B/C ratio for System 2 is is more economical. (Round to two decimal places.) (Round to two decimal places.) c. The incremental B/C ratio is (Round to two decimal places.) Therefore, based on the B/C ratio method, System is more economical. Note that the two methods should always result in the same recommendation