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The City of Brandon is installing a new swimming pool in the municipal recreation centre. Two designs are under consideration, both of which are to

The City of Brandon is installing a new swimming pool in the municipal recreation
centre. Two designs are under consideration, both of which are to be permanent
(i.e., lasting forever). The first design is for a reinforced concrete pool that has a first
cost of $1500000. Every 10 years, the inner surface of the pool would have to be refinished and painted at a cost of $200000.
The second design consists of a metal frame and a plastic liner, which would have an
initial cost of $500000. For this alternative, the plastic liner must be replaced every
5 years at a cost of $100000, and every 15 years the metal frame would need replacement
at a cost of $150000. Extra insurance of $5000 per year is required for the plastic liner
(to cover repair costs if the liner leaks). The citys cost of long-term funds is 5 percent.
Determine which swimming pool design has the lower present cost

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