A city has developed a plan to provide for future municipal water needs. The plan proposes an aqueduct that passes through 500 feet of tunnel in a nearby mountain. The first alternative is to build a full-capacity tunnel now for dollar 556,000. The second alternative is to build a half-capacity tunnel now (cost = dollar 402,000), which should be adequate for 20 years, and then to build a second parallel half- capacity tunnel. The maintenance cost of the tunnel linings every 10 years for the full-capacity tunnel is dollar 40,000 and for each half-capacity tunnel it is dollar 32,000. The friction losses in the half-capacity tunnels will be greater than in the full-capacity tunnel. The estimated additional pumping costs in each half-capacity tunnel will be dollar 2000 per year. Based on capitalized cost and a 7 percentage interest rate, which alternative should be selected