Question: The Logan Well Services Group is considering two sites for storage and recovery of reclaimed water. The mountain site (MS) will use Injection wells that

The Logan Well Services Group is considering two sites for storage and recovery of reclaimed water. The mountain site (MS) will use Injection wells that cost $4.2 million to develop and $280,000 per year for M&O. This site will be able to accommodate 150 million gallons per year. The valley site (VS) will involve recharge basins that cost $11 million to construct and $400,000 per year to operate and maintain. At this site, 740 million gallons can be injected each year. If the value of the injected water is $3.00 per thousand gallons, which alternative, if either, should be selected according to the B/C ratio method? Use an interest rate of 8% per year and a 20-year study period. The B/C ratio is Select alternative (Click to select)
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