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The government is considering four different systems to replace its aged water filtering system: System A System B System C System D Cost 400,000 500,000

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The government is considering four different systems to replace its aged water filtering system: System A System B System C System D Cost 400,000 500,000 625,000 800,000 Economic Life (Years) 6 10 Infinite Infinite First Year Operating Costs 16,500 16,000 10,000 18,000 Operating Costs Growth Rate 5% 0% 6% 0% Salvage Value 90,000 75,000 NA NA Given the discount rate is 12%, which system should be chosen

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