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The costs of three alternatives for a small water supply system are being evaluated: Option A has an initial cost of $100,000, an annual operating
The costs of three alternatives for a small water supply system are being evaluated: Option A has an initial cost of $100,000, an annual operating cost of $50,000, upgrading costs at year 4 of $30,000 and year 6 of $40,000, a salvage value of $30,000, and a design life of 10 years. Option B has an initial cost of $140,000 and an annual operating cost of $30,000. There is no salvage value, and the design life is 10 years. Option C has an initial cost of $350,000, a salvage value of $50,000, and annual operating costs of $15,000. It has an expected design life of 20 years. The MARR is 12%. Select the least cost alternative using Present Worth analysis. Select the least cost alternative using Equivalent Uniform Annual Cost analysis Select the least cost alternative using Rate of Return analysis
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