1) There are two alternatives for a project given below Alternative 1 Initial cost = BD 10,000 Annual Maintenance cost for every 10 years = BD 1000 One time renovation after year 5 = BD 2000 Alternative 2 Initial cost = BD 15,000 Annual Maintenance cost for every 10 years = BD 1200 One time renovation after year 5=BD 2500 Operating cost for every 10 years = BD 1700 Compare the alternatives using capitalized cost method for = 4% and find out the economical alternative