A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $408,000 with annual operating and maintenance costs of $40,000 for the next
17 years; design B calls for an investment of $297,000 with annual operating and maintenance costs of $64,000 per year for the next 17 years. Fee collections from the residents would again
be $90,000 per year. The interest rate is 6%, and no salvage value is associated with either system.
Click the icon to view the interest factors for discrete compounding when i = 6% per year.
(a) Using the benefit-cost ratio BC(I), which system should be selected?
The PI(i)$_{A-B}$ is. (Round to two decimal places.)