6- A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site. Otherwise,

45 a gasoline engine will be used. Use an annual cash flow analysis and a 6% interest rate. How should the pump be powered? Gasoline Electric $2400 $9000 250 50 First cost Annual operating cost 1200 Annual maintenance 300 300 5 Salvage value Life, in years 600 10 6- Road Runner LLC (RRL) is considering three alternate routes in the desert. RRL uses a MARR of 5%. Using equivalent annual worth over the least 48 common multiple horizon, which choice is best? Route 105 Route 205 Route 305 First cost $520,000 $460,000 $395,000 Savings/year 135,000 100,000 95,000 Life 6 5 7