A public utility is trying to decide between two different sizes of pipe for a new water main. A 250-mm line will have an initial cost of P1,600,000, whereas a 300-mm line will cost P1,840,000. Since there is more head loss through the 250-mm pipe, the pumping cost for the smaller line is expected to be P100,000 per year more than for the 300-mm line. If the pipes are expected to last for 15 years, which size should be selected if the interest rate is 12% semi-annually? Use AW, PW, and FW methods in your solution analysis

A public utility is trying to decide between two different sizes of pipe for a new water main. A 250-mm line will have an initial cost of P1,600,000, whereas a 300-mm line will cost P1,840,000. Since there is more head loss through the 250-mm pipe, the pumping cost for the smaller line is expected to be P100,000 per year more than for the 300-mm line. If the pipes are expected to last for 15 years, which size should be selected if the interest rate is 12% semi-annually? Use AW, PW, and FW methods in your solution analysis.