Suppose that a municipality wants to establish a cleaning facility to clean the river. There are two options given by two different companies:

Option 1:

Equipment Cost=$300,000, Operating Cost=$200,000/year, Salvage Value=$115,000, Lifetime=3 years

Option 2:

Equipment Cost=$400,000, Operating Cost=$80,000/year, Salvage Value=$70,000, Lifetime=6 years

Assuming the projects are repeatable, which model should be chosen at MARR=11% using present worth analysis? What would be your decision if you used annual worth analysis?