How to select the better system based on bc analysis

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Reference no: EM13231418

A city government is considering two types of town dump sanitary systems, as shown below. Select the better system based on BC analysis at 8% social discount rate (same as MARR).

Design A Design B
Initial investment $400,000 $300,000
Annual O&M $50,000 $80,000
Project horizon 15 years 15 years
Annual fees collected $85,000 $85,000

Reference no: EM13231418

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