What problem of the low-bid process is the negotiated price process intended to solve? The negotiated price process places a greater emphasis on lowering cost than the low-bid process.
The negotiated price process focuses on contractor qualifications instead of simply seeking the lowest-bidding contractor.
The negotiated price process is easier to manage than the low-bid process.
The negotiated price process is faster than the low-bid process.

An external consultant recommends that a plant installs a bank of capacitors for power factor correction. this will reduce the peak electrical demand charges by an average of 93 kw every month. the plant current pays $13 per kw in peak demand charges. the capacitor bank will include 223 kw of fixed capacitors, and 183 of variable capacitors. the fixed capacitors cost $59 per kw, and the variable capacitors will cost $65 per kw. the consultant charges 21% of the equipment costs to install the capacitors. because this project will reduce the demand for the electric utility, they are prepared to provide a one-time rebate of $42 per kw of reduced demand. what is the simple payback period for this project (in years)?