The city council wants the municipal engineer to evaluate three alternatives for supplementing the city water supply. The first alternative is to continue deep-well pumping at an annual cost of $10,500. The second alternative is to install an 18 -inch pipeline from a surface reservoir. First cost is $25,000 and annual pumping cost is $7000. The third alternative is to install a 24 -inch pipeline from the reservoir at a first cost of $34,000 and annual pumping cost of $5000. The life of each alternative is 20 years. For the second and third alternatives, salvage value is 10% of first cost. With interest at 8%, which alternative should the engineer recommend? Use present worth analysis