Two incinerators are being considered by a waste management company. Design A has an initial cost of \($2\),500,000, has annual operating and maintenance costs of \($800\),000, and requires overhauls every 5 years at a cost of \($1\),250,000.

Design B is more sophisticated, including computer controls; it has an initial cost of \($5\),750,000, has annual operating and maintenance costs of \($600\),000, and requires overhauls every 10 years at a cost of \($3\),000,000. Using a 5 percent/year interest rate, determine the capitalized cost for each design and recommend which should be chosen.