Exercises 36 A medium-size municipality plans to develop a software system to assist in project selection dur- ing the next 10 years. A life-cycle cost approach has been used to categorize costs into develop- ment, programming, operating, and support costs for each alternative. There are three alternatives under consideration, identified as A (tailored sys- tem), B (adapted system), and C (current system). the best alternative at 8% per year. Alternative Component Cost A Development $250,000 now, $150,000 years 1-4 Programming $45,000 now, $35,000 years 1, 2 Operation Support $50,000 years 1-10 $30,000 years 1-5 B Development $10,000 now Programming $45,000 year 0, $30,000 years 1-3 Operation Support $80,000 years 1-10 $40,000 years 1-10 C Operation 175,000 years 1-10