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Your company is required to build a new water treatment plant in compliance with the new environmental regulations. You have two options to consider -

Your company is required to build a new water treatment plant in compliance with the new environmental regulations. You have two options to consider - Option A and Option B.
Option A requires an initial investment of $40,000 and will remain operational for 6 years. The cost of maintenance for Plant A will be $8,000 in year 1, $14,000 in year 2, $13,000 in year 3, $12,000 in year 4, $11,000 in year 5, and $10,000 in year 6.
Option B, on the other hand, requires an initial investment of $20,000 and will remain operational for 3 years. The maintenance cost of option B is $7,000 in year 1, $13,000 in year 2, and $13,000 in year 3.

You need to decide which plant to select, keeping in mind that both options can be repeated.

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