a. Use annual cash flow analysis because O&M is already on an annual basis
b. Calculate A| p factor to be used for all three alternatives. Alternatively, use a table in an engineering economics textbook
c. Annual cost for connection to WTP
A = $1,500,000 (A| p, 0.06, 20) + $300,000
A = $1,500,000 (0.0872) + $300,000
A = $130,800.00 + $300,000
A = $430,800
d. Annual cost for membrane A
A = $2,374,000 (A| p, 0.06, 20) + $209,000
A = $2,374,000 (0.0872) + $209,000
A = $207,012.80 + $209,000
A = $416,012.80 or $416,000
e. Annual cost for membrane B
A = $2,162,000 (A| p, 0.06, 20) + $258,000
A = $2,162,000 (0.0872) + $258,000
A = $188,526.40 + $258,000
A = $446,526.40 or $446,500
f. Recommend membrane A as least cost