b) The Oman National Grid Company ventures to a new project in the southern part of the Sultanate which is a 250-kilometre, 132 kilovolts transmission line. The company must choose between an Overhead transmission system and an Underground transmission system. Table Q2(b) shows the initial investment for each type, the expected revenues during its lifetime which includes the cost savings incurred by the underground transmission system over the overhead transmission system. The company has estimated a salvage value for each type of transmission to be 5% of the initial investment. As a company policy, the minimum attractive rate of return MARR is 8% per year. Determine Page 2 of 5 which of the two alternatives is acceptable to the company using the following methods; (i) Net present value (NPV); (ii) Internal rate of return (IRR). Table Q2(b) [Total 20 marks]