6,33 A medium-size municipality plans to develop a software system to assist in project selection dur- ing the next 10 years. A life-cycle cost approach has been used to categorize costs into develop- ment, programming, operating, and support costs for each alternative. There are three alternatives under consideration, identified as M, N, and O. The costs are summarized below. Use an annual life-cycle cost approach to identify the best alter- native at 8% per year. Alternative Component Estimated Cost M Development S250,000 now, S150,000 years 1-4 Programming $45,000 now, $35,000 years 1,2 Operation $50,000 years 1-10 Support $30,000 years 1-5 N Development $10,000 now Programming $45,000 year 0. $30,000 years 1-3 Operation $80,000 years 1-10 Support $40,000 years 1-10 O Operation $175,000 years 1-10