1) You are comparing two alternative lifting methods, a sucker rod pumping system and an ESP system, for installation in your well. You have surplus ESP equipment that w ft the necessary amount of fluid and your accountant tells you the transfer fee to the well is only $18,000. Unfortunately, you do not have any surplus rod pumping systems. If the annual operating cost of the ESP is S6,000 and the rod pumping system is $1,500, and you assume the operating cost will paid at the end of each period, how much can you afford to pay for the rod pumping system and be indifferent betweer the two options? Your annual interest rate is 8.5% and you believe the system will need to be in place for 30 years. The life of the ESP is only 6 years, but you have surplus for each replacement at the same cost of $18,000. The life of the rod pumping system would be 30 years