Alternative 1 has a capital cost of $2,069,000 and annual O&M cost of $348,000 Alternative 2...

Alternative 1 has a capital cost of $2,069,000 and annual O&M cost of $348,000

Alternative 2 has a capital cost of $7,182,000 and annual O&M cost of $394,000

Number of years = 30, interest rate = 3%

Compare the two alternatives using the present worth method AND annual cost method. Which is least costly? Are the conclusions same for each method?

Expert Solution

Ally Wells answered 10 months ago

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