7. The Lebanese Ministry of Transportation is considering three contracts to maintain the runways in Beirut airport. Details cash flows for the three alternatives (A, B and C) are shown below. Maintenance contracts A and B are expected to be renewed every time after they expire, at approximately the same costs and salvage values, over the foreseeable future (assuming repeatability). The interest rate is 12% per year, compounded monthly. (20 points) Initial Cost A $100,000 $440,000 $400,000 B C Annual Cost per Year $30,000 $20,000 $0 Extra Repair Cost every 10 years $0 $0 $50,000 Extra costs every 2 years $4,000 $0 $4,000 Salvage Value $8,000 $30,000 $0 Life Cycle (in years) 4 201 00 a) Consider only the first two alteratives A & B. Which alternative would you advise? (Solve on EXCEL ONLY using the PW method with LCM) b) If the ministry must choose one of the above three alternatives (A, B, and C), which alternative would you advise? (Solve manually using the Capitalized Cost (Worth) method for infinite projects)