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

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Civil Engineering

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

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

Number of years = 30, interest rate = 3%

Compare the two alternatives using the present worth method ANDannual cost method. Which is least costly? Are the conclusions samefor each method?

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