A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site. Otherwise a gasoline engine will be used. Use a present worth cash flow analysis, using the following data and a 10% interest rate, to determine how the pump should be powered. Calculate PWgas (present worth for gasoline option) and PWelectric (present worth for electric option).

Gasoline Electric First Cost $2400 $6000 Annual Operating cost 1200 750 Annual Maintenance 300 50 Salvage value 300 600 Life in years 5 10 Which of the following statements is the best answer: (a) PWgas = $7,900; PWelectric = $10,685; Choose gasoline pump (b) PWgas = $15,550; PWelectric = $17,588; Choose gasoline pump (c) PWgas = $12,805; PWelectric = $10,685; Choose electric pump (d) PWgas = $10,508; PWelectric = $9,685; Choose electric pump