||The town of Dry Gulch needs an additional supply of water from Pine Creek. The town engineer has selected two plans for comparison: a gravity plan (divert water at a point 10 miles up Pine Creek and carry it through a pipeline by gravity to the town) and a pumping plan (divert water at a point closer to the town and pump it to the town). The pumping plant would be built in two stages, with half-capacity installed initially and the other half installed 10 years later. An analysis will assume a 40-year life, 10% interest, and no . Costs are as follows: Use an annual cash flow analysis to determine the more economical plan.