There are two mutually exclusive proposals I for a for a flood control project in Illinois. The first I proposal involves an initial outlay of $1, 350,000 and 1 annual expenses of $110,000. This plan is assumed to be permanent. The second proposal requires an initial outlay of $700,000, followed by $200,000 even 12 years thereafter. Annual expenses for the second proposal are estimated to be $95,000 for the first 12years and $150,000 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