1. You are the FPE at a petroleum plant and are overseeing the design and installation of a new storage container. There are two separate options to provide fire protection for the tank. System A includes an initial investment of $5,000,000 with a yearly maintenance of $125,000. System B includes an initial investment of $3,000,000 with a yearly maintenance of $415,000. Assume both systems have a life expectancy of 10 years and the interest rate is 6%. Which system is the most desirable?
2. All I need is the equation with an example I don't want it solved for me I just don't understand how they have gotten some of these numbers