Question: Evaluate which project is economically cheaper based on present worth (PW). Option A: Operational life = 10 years; Capital investment = $500,000; Annual O&M cost

Evaluate which project is economically cheaper based on present worth (PW). Option A: Operational life = 10 years; Capital investment = $500,000; Annual O&M cost = $50,000; Salvage Value = $80,000 Option B: Operational life = 5 years; Capital investment = $300,000; Annual O&M cost = $60,000; Salvage Value = $40,000 Assume an interest rate of i=6%

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