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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

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?

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