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Two alternatives are under consideration for a certain erosion control project. Their estimated costs are shown below. Alt 1 Alt 2 Initial cost, $ $400,000

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Two alternatives are under consideration for a certain erosion control project. Their estimated costs are shown below. Alt 1 Alt 2 Initial cost, $ $400,000 2,000,000 Annual cost, Styr 80,000 30,000 Increase in costyr beginning in yr. 2,5 3,000 Salvage value, $ 40,000 5,000,000 5 At an interest rate of 10% per year, their annual worths are closest to: Life, years a. AW1 =-5151,300, AW 2 --$189,400 Ob. AW1 = -5151,300, AW2 = -$230,000 O AW1 --$184,400, AW2 = -5151,300 d. AW1=-$184,400, AW2 =-$230,000

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