The City of Greenhills is considering an aquaduct with the following two options:

	Option P	Option Q
Initial Cost	$256,000	$595,000
Life	5	10
Salvage	10%	10%
First year benefits	$21,000	$35,000
Increase in benefits per year	$3,000	$4,000
Rate	5%	5%	p y c y

Other annual maintenance costs for both the options are the same and hence can be ignored in conducting the analysis. The price for Option P is estimated to be constant over the foreseeable future. Which would you recommend based on EUAW if the city has to pick one option? Assume the benefits for the second copy of Option P revert back in the first year to the number provided.

		Option P
		Option Q
		Option P and Q are both equally good.
		None of the ones are good; both need to be rejected.