Potable water is in short supply in many developing countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in a developing country. Doing nothing is not an option. The MARR is 8% per year. Answer the following questions: a. Calculate the net AW of each system over the service life. b. Calculate the modified B/C ratio for each of the two systems. c. Use the B/C ratio method to determine which system is more economical. Initial Capital Annual Revenues Annual Costs Service life (years) Salvage value IRR System 1 System 2 $150,000 $240,000 $58,000 $85,000 $22,000 $43,000 12 12 $18,000 $52,800 22.1% 14.8%