• A medium-size municipality plans to develop a software system to assist in project selection during the next 10 years. A life-cycle cost approach has been used to categorize costs into development, programming, operating, and support costs for each alternative. There are three alternatives under consideration, identified as A (tailored system), B (adapted system), and C (current system). Find the annual worth of life-cycle cost for the best alternative at 8% per year.

Alternative	Component	Cost
A	Development	$925,000 now, $370,000 years 14
	Programming	$925,000 now, $740,000 years 1, 2
	Operation	$185,000 years 110
	Support	$185,000 years 15
B	Development	$185,000 now
	Programming	$370,000 year 0, $185,000 years 13
	Operation	$370,000 years 110
	Support	$370,000 years 110
C	Operation	$925,000 years 110