Project Management & Financial Analysis $-$ PR$3150$

Practice Test Page $4$

$5.$ A pump is needed for $20$ 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 present worth analysis and a $6\%$ interest rate. How should the pump be powered? $($Gas: $$8493\mathrm{.}81,$ Electric $$8421\mathrm{.}22,$ choose Electric$)$

$\backslash$table$[[,$Gasoline,Electric$],[$First Cost,$$2400,$$$5500$