Question: please solve with formulas like (F/P, 5% , n) not with the excell. E.2. Find which of the two alternative sewer designs has the lowest
please solve with formulas like (F/P, 5% , n) not with the excell.

E.2. Find which of the two alternative sewer designs has the lowest present worth. The ex- pected life of each is 20 years, and i = 8 percent per year. All annual payments are end- of-year. Design A. Gravity flow, deep installation Cost new, $780,000 O & M, $1,000/yr Salvage value, none Design B. Lift station, shallow installation Cost new, $500.000 O&M, $12,000 for years 1 through 5, increasing by $1,200/yr/yr thereafter, ($13,200 at EOY 6, $14,400 at EOY 7, etc.) Salvage value, $100,000 at EOY 20 (a) Draw the cash flow diagram for design B only. (b) Find the present worth of each alternative. hatant
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