Problem 2.5 (15 points) The Florida Department of Agriculture & Consumer Services is investigating two proposals for increasing the capacity of the drainage canal in an agricultural region. (15 points) i) Proposal A requires removing weeds and sediment that have accumulated during previous years. The dredging equipment costs $600,000 to purchase. The equipment is expected to have a 10-year life with a $18,000 salvage value. The annual operating costs are estimated to be $40,000. To control weeds in the canal, an additional $150,000 is required per year for the weed control program. ii) Proposal B is to line the canal with concrete at an initial cost of $5 million. The lining is assumed to be permanent, but maintenance will be required at a cost of $3,000 each year. In addition, lining repairs will be made every 5 years at a cost of $20,000. Compare the alternative using the EUAW with an interest rate of 5% per year. State which is the better alternative and provide one sentence explaining why. Problem 2.5 (15 points) The Florida Department of Agriculture & Consumer Services is investigating two proposals for increasing the capacity of the drainage canal in an agricultural region. (15 points) i) Proposal A requires removing weeds and sediment that have accumulated during previous years. The dredging equipment costs $600,000 to purchase. The equipment is expected to have a 10-year life with a $18,000 salvage value. The annual operating costs are estimated to be $40,000. To control weeds in the canal, an additional $150,000 is required per year for the weed control program. ii) Proposal B is to line the canal with concrete at an initial cost of $5 million. The lining is assumed to be permanent, but maintenance will be required at a cost of $3,000 each year. In addition, lining repairs will be made every 5 years at a cost of $20,000. Compare the alternative using the EUAW with an interest rate of 5% per year. State which is the better alternative and provide one sentence explaining why