Part 2: (30 Marks) Q8: (15Marks) The city of Abu Dhabi, U.A.E has recieved two designs for a new wing to the munc hospital. The costs and benefits are same in most of the categories, but financial manager decided that the following estimates should be cons determine which design to recommend at the city council meeting next week. the city considered to Design 1 10,000,000 Design 15,000,000 55,000 Construction Cost,$ Building Maintenanc 35,000 e Cost, S/Year Patient 800,000 1,050,000 Benefits, S/Year The patient benefit is an estimate of the amount paid by an insurance carrier, not the patient, to occupy the hospital room with features included in the design of each room. The discount rate is 5% per year, and the life of the addition is estimated at 30 year. Calculate: A. The annual worth of cost of Design 1 (3 Marks) B. The annual worth of cost of Design 2 (3 Marks) Apply the incremental B/C procedure with no disbenifits included and direct benefits esimated and calculate C. Incremental B/C ratio for Design -1 (3 Marks) D. Incremental B/C ratio for Design -2 (3 Marks) E. Which design is selected