.Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs of the site include

$1,000,000 start-up costs,$100,000 closedown costs30 years fromnow, and operating costs of$20,000 per year. Starting in10 years, it is expected that there will be revenues from user fees of$30,000 per year. The alternative is to ship the waste out of the region. An area firm will agree to along-term contract to dispose of the waste for$130,000 per year. Using theannual worth methodwhich alternative is economically preferred for aMARRof11 percent?