Detailed CFDs Sektion Marks 1 2 1 05 OS Proper units Overaly Total Q.1: A developer has two design options for building a small warehouse. One option involves the use of timber while the other uses structural steel. Option 1, the timber option, costs SR 40,000 initially, incurs an annual maintenance cost of SR 6,500, and has a salvage value after 10 years of SR 5,000. Option 2, the steel option, involves an initial payment of SR 60,000, SR 3,500 in annual maintenance costs, and at the end of its fifteen-year economic life has no salvage value. (a) Draw the cash flow diagram for each option. (b) Compare the two options on the basis of their AW, assuming an interest rate of 12%. (c) Based on your analysis, which option should be considered by the developer & why