Note: Exchange of Calculators is not allowed. Question 2 (8 marks): A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar ells will cost 16,600 OMR to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, etc., are expected to be 2400 OMR. A new power ine will cost 31,000 OMR to install, with power costs expected to be 1000 OMR per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, a) which alternative should be selected on the basis of an annual worth analysis and 5) what must be the first cost of the above ground line to make the two alternatives equally ttractive economically? A = solar cell Colution: A WC 10%.) A = -16,600 (A/p 104,5) - 2400 = -16600 (0./(1+0.1) - 2400 = -6779 OMR (1+0.1)51 w(10%) B 31,000 ( 0.1(1+0.1) TODO = - E-9177 om (1+0.195-1 Aw(10%) has less negatiu alue than Aw(10%) 13 solar panel is selected. B a poner line - -9177 - -31,000 ( Alps ix. 6) - - 1