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4. Two alternatives are being considered to supply water from a reservoir to a local community. Option A is a tunnel and Option B is on open channel (steel flume with concrete-lined canal) Construction Annual O&M Economic Life (years) 100 Alternative cost A-Tunnel S8,000,000 $55,000 $0 B-Open Channel Steel Flume Canal $900,000 $120,000 $1,000,000 50 100 20 $0 $0 $25,000 Canal Lining $550,000 a. Draw the cash-flow diagrams. b. Assuming an interest rate of 6%, determine the present worth of each alternative c. Which is the best alternative from an economic perspective?
engineering   Civil-Engineering   
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