There are two mutually exclusive proposal for a for a flood control project in Illinois. The first proposal involves an initial outlay of $1350000 and annual expenses of $110000 this plan is assumed to be permanent. The second proposal requires an initial outlay of $700000 followed by $200000 every 12 years thereafter. Annual expenses for the second proposal are estimated to be $95000 for the first 12 years and $150000 each year thereafter. Annual benefits are identical for both projects, and terminal salvage values are negligible. The interest rate is 6% per year. Which proposal should be recommended? (engineering economy Ch10 question 15 )