a.Question 5a is worth10 marks.

An international NGO (Non-Governmental Organisation) is keen on setting-up water supplies for remote communities in Brazil. The NGO calls for bids for teams of technicians from local engineering firms, and two submissions are received. Krenak Engenharia quote 1100 BRL a week but with a one-off signing-up fee of 10 000 BRL, and Sao Paolo Engenharia Ambiental quote 1500 BRL a week.

[Note:BRL is the Brazilian Real, the local currency, please answer the question using BRL; for interest at the time of writing 1 BRL = 0.13]

a.Using a graphical method, determine the point at which the cost for both Companies would have reached the same total.

b.Then, state which Company would be more economical to use for the Project, if it is to go beyond the point determined in (a).

b.