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System A is a storage tank with an initial cost of $450,000 and maintenance of $5000 annually. System B is a holding pond costing $180,000

System A is a storage tank with an initial cost of $450,000 and maintenance of $5000 annually. System B is a holding pond costing $180,000 to create and $68,000 for pumps and piping. In addition, the pond system will require operating and maintenance of $1400 per year. MARR is 16%.

Using present worth of each system, determine which system is best for the company.

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