The following three land options are under consideration for a water treatment facility. Option 1: land cost of $40 million, facility first cost of $150 million a year, benefits of $50 million a year, disbenefits of $25 million a year, and useful life of 10 years Option 2: land cost of $40 million, facility first cost of $150 million a year, benefits of $50 million a year, disbenefits of $19 million a year, and useful life of 15 years Option 3: land cost of $55 million, facility first cost of $150 million a year, benefits of $10 million a year, indirect annual net revenue of $15 million, and useful life of 20 years If the options are mutually exclusive and MARR is 8%, use benefit-cost analysis to select the best alternative.
