The City of Zamboanga contemplates to increase the capacity of her existing water transmission lines. Two plans are under consideration. Plan A requires the construction of a parallel pipeline, the flow being maintained by gravity. The initial cost is and the life is P2,750,000.00 and the life is 40 years, with an annual operating cost of P5,000.00. Plan B requires the construction of a booster pumping station costing P1,050,000.00 with the life of 40 years. The pumping equipment cost an additional amount of P250,000.00, it has a life of 20 years and a salvage value of P25,000. The annual cost is P 165,000.00. Which is the most economical plan if the interest rate is 12% and how much is the difference between the two plans. Use Present Worth Method