Question: A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is

A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site. Otherwise, a gasoline engine will be used. Use an annual cash flow analysis to determine, based on the following data and a 10% interest rate, how the pump should be powered.

Electric Gasoline First cost Annual operating cost Annual maintenance Salvage value Life, in years $6000 750 $2400 1200

Electric Gasoline First cost Annual operating cost Annual maintenance Salvage value Life, in years $6000 750 $2400 1200 300 50 600 300 10

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